Australia has accepted an invitation from the United States to join a coalition of countries protecting oil tankers and cargo ships from attack by Iran in the Strait of Hormuz.

Prime Minister Scott Morrison stressed Australia's involvement will be "modest, meaningful and time limited."

Australia will join a US-led coalition to protect shipping in the Straits of Hormuz. Credit:Bloomberg

"This destabilising behaviour is a threat to Australia's interests in the region," Mr Morrison said on Wednesday morning.

"The government has decided that it is in Australia's national interest to work with our international partners to contribute. Our contribution will be limited in scope and it will be time bound."