Iranian President Hassan Rouhani (Picture: PA)
Iran has warned western powers not to send more armed forces to the Gulf for fear of inflaming Middle East tension.
President Hassan Rouhani claims foreign forces have no place in the region and should not be used in an "arms race".
The US has said it will deploy extra troops and military equipment to Saudi Arabia and the United Arab Emirates to increase security.
While the Saudi Foreign minister Adel al Jubeir has confirmed Riyad has also asked for British forces involvement, saying:
"The UK has been one of our staunchest allies when it comes to security and we are in consultations with the United Kingdom on this area.
"The United Kingdom has agreed to provide naval assets in order to help with maritime security."
It comes after a series of attacks on Saudi's energy infrastructure, including a major drone-and-missile hit on Saudi Arabia's oil industry that shook global energy markets.
Iran has denied the allegations and said any retaliatory strikes from the US or Saudi Arabia will lead to "all-out war".
Speaking during a military parade, President Hassan Rouhani warned that the presence of foreign forces in the Gulf could cause problems for the world's "energy security".
He said that Iran extends its "hand of friendship and brotherhood" towards regional nations for overseeing security in the Persian Gulf and its narrowest point, the Strait of Hormuz, where one-fifth of global oil exports passes.
Along with boosting troop and equipment levels in Saudi Arabia and the United Arab Emirates, the US is leading a maritime coalition, which includes the UAE, Saudi Arabia, Bahrain, the UK and Australia, to secure the area's waterways and vital oil trade routes.
In Tehran, the military parade marked the 39th anniversary of the eight-year war with Iraq that began when Saddam Hussein invaded Iran in 1980.
Similar parades were held in many major cities and towns across the country including the port city of Bandar Abbas near the Strait of Hormuz.
State TV showed scores of Iranian fast attack boats, as well as air defence and other military equipment.