UK Foreign Secretary David Cameron called Iran's actions an "extremely malign influence in the region and the world".
Cameron also promised to strengthen deterrence measures against Tehran.
The former British prime minister's warning echoed accusations by the United States that Iran was involved in attacks on merchant ships by Yemen's Houthi rebels by providing drones, missiles and intelligence.
Cameron, who visited the region this week and discussed with his Egyptian counterpart Israel's war on the Gaza Strip as well as the volatile situation in the Red Sea, accused Tehran of supporting various "proxies" there.
"Iran is an extremely malign influence in the region and in the world - there's no doubt about that," he told the Sunday Telegraph newspaper.
"The Houthis, Hezbollah, the Iranian-backed militias in Iraq that are actually attacking British and American bases and troops. And of course Hamas," he added.
According to the Chamber, Iran should receive an extremely clear message that this escalation will not be tolerated.
Britain's top diplomat, who last month returned to politics after stepping down as prime minister after losing the 2016 Brexit referendum, said London would step up cooperation with its allies on Tehran.
"We need to work with our allies to create a really strong set of deterrents against Iran. The level of danger and uncertainty in the world is extremely high compared to previous years and decades, and the threat from Iran is part of that picture." emphasized the British foreign minister.
Britain will provide warships for the new maritime security initiative in the Red Sea, known as Operation Prosperity Guardian.
Earlier this month, the UK also unveiled new sanctions targeting "Iranian decision-makers and those who do its bidding", including the leader of the Islamic Revolutionary Guard Corps' Quds Force.
Asked if London was prepared to impose other measures, Cameron said that information was "not for public consumption".
The minister specified that he wanted to send "a very clear warning to the Houthis and their Iranian supporters that we will not tolerate attacks on shipping." /BGNES
