Australia will send troops, a plane and a warship to help guard the Strait of Hormuz in the Middle East, Prime Minister Scott Morrison has confirmed.
Prime Minister Scott Morrison said the "modest, meaningful and time-limited" contribution was in Australia's national and economic interests.
"The government has decided it's in Australia's national interests to work with our international partners to contribute to an international maritime security mission ... in the Middle East," he told reporters at Parliament House on Wednesday.
At least 15 per cent of crude oil destined for Australia - and up to 30 per cent of refined oil - transits through the Persian gulf.
"So it is a potential threat to our economy," Mr Morrison said.
The warship will be redirected from an anti-piracy operation in the Middle East, while the Australian troops will be based in the headquarters that are coordinating the US-led maritime security mission.
Extension possible
Initially, Australia will be involved for at least six months.
However, the prime minister made it clear the mission could be extended.
The deployment raises questions about the rules of engagement, and what Australian troops will be able to do in response to any aggressive behaviour that comes their way.
Australia's Chief of the Defence Force Angus Campbell was asked what the frigate would do if a commercial ship was seized, and whether his troops would be allowed to open fire.
"Our people are very well trained and they will be operating under international law," General Campbell told reporters.
"Their presence will be to support security of shipping and freedom of navigation."
Labor supports the decision to send Australian forces to the Strait of Hormuz.
Acting opposition leader Richard Marles said the size of the deployment and tight timeframe were both appropriate.