Foreign Minister Penny Wong joined counterparts virtually on Thursday evening to discuss resuming maritime navigation through the Strait of Hormuz after Iran closed it in response to US-Israeli attacks.
"The focus of last night's meeting was diplomatic and civilian initiatives countries could pursue to make the Strait of Hormuz accessible and safe," Ms Wong said in a statement on Friday.
"Ministers agreed on the importance of continued co-ordination and collective action.
"Australia is not taking offensive action against Iran and we are not deploying troops on the ground in Iran."
Oil prices are soaring, which has inevitably driven up the cost of food for many households across the world as leaders try to manage the economic fallout of the war in the Middle East.
The government has described the talks as "really productive" and maintained its calls for de-escalation and a resolution of the war.
Asked if Australia has sent elite special forces troops to the Middle East, cabinet minister Anika Wells did not deny the reports in News Corp papers.
"I want to reassure Australians, we are not involved in offensive action overseas," she told ABC News Breakfast.
"The specifics of when and where assets are deployed in the region, as you would imagine, are operational and I can't comment."
In a televised address from the White House on Thursday, US President Donald Trump said the core objectives of the war in Iran were "nearing completion" and that the regime was no longer a threat.
He called on allies of the US that do depend on oil coming through the Strait of Hormuz to take action.
"The countries of the world that do receive oil through the Hormuz Straight must take care of that passage," Mr Trump said.
"We will be helpful, but they should take the lead in protecting the oil that they so desperately depend on."
Defence analyst Marcus Hellyer, head of research at Strategic Analysis Australia, said a modest military contribution from Canberra in the form of a warship would be unlikely to have any impact on the conflict in the Middle East.
"The worst case is a nuclear war, we do need to find a solution and countries need to pull Israel, the US and Iran back from the brink," he told AAP.
He said Australia didn't have many ships it could send to the region due to previous governments' mismanagement of the defence acquisition process.
Opposition Leader Angus Taylor has called for Australia to consider any requests made by the US to send military assets to the Middle East.
Prime Minister Anthony Albanese questioned the need for a prolonged war in an address to the National Press Club on Thursday.
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