Officials have prepared a range of options for the president to consider.
President Donald Trump announced "major combat operations" against Iran on Feb. 28, with massive joint U.S.-Israeli strikes targeting military, government and infrastructure sites.
Despite a memorandum of understanding signed by both countries in June aimed at ending the war, talks broke down and the U.S. and Iran renewed strikes, with the strategic Strait of Hormuz as the primary flashpoint.
Across the region, fighting in Yemen between the Iranian-backed Houthis and Saudi-backed Yemeni forces has intensified in recent weeks and the militia group has also launched strikes on Saudi Arabia.
The UKMTO said it received a report that a tanker was struck by an unknown projectile in the Strait of Hormuz. Authorities are investigating the incident.
"Vessels are advised to transit with caution and report any suspicious activity to UKMTO," the UKMTO said Tuesday.
The Saudi-led coalition in Yemen said Tuesday it launched a military operation targeting fuel facilities it accuses the Houthis of using to power their war effort.
The Saudi-led coalitions targets include a central station in Sana’a and fuel depots, tanks and unloading berths in Hodeidah, Sana’a and Dhamar.
Coalition spokesman Maj. Gen. Turki al-Maliki said the Houthis use the sites to supply the missiles and drones they have used to threaten Saudi Arabia and Red Sea shipping, and that the strikes were carried out in line with international humanitarian law, with precautions taken to avoid civilian harm.
The coalition called on the Houthis to immediately stop attacks on civilians and civilian infrastructure, including airports, seaports and oil installations.
There was no immediate response from the Houthis.
-ABC News' Desiree Adib
Saudi Arabia’s cabinet, led by Crown Prince Mohammed bin Salman in Riyadh, has warned that Yemen’s Houthis will face "consequences" for their ongoing attacks on the Kingdom, according to Saudi state media.
The Saudi Press Agency reported that the cabinet said it would not "tolerate threats to its security or to maritime navigation in the Red Sea and the Bab al-Mandab Strait."
The cabinet also commended the Saudi backed Yemeni government forces for their work to "neutralise the threats" posed by the Houthis, according to the Saudi Press Agency.
Saudi-led coalition forces in Yemen said Monday they intercepted and destroyed a ballistic missile fired by the Houthis towards Riyadh.
The statement on social media from Turki al-Maliki came after Saudi Arabia's General Directorate of Civil Defense issued a security alert for Riyadh warning about a "potential danger," before updating that "the danger has passed."
Following the Turki al-Maliki statement, a Houthi military spokesperson said in a post on Telegram that the group targeted King Khalid International Airport in Riyadh with a ballistic missile, claiming that the strike was "accurate."
