Tehran has denied involvement in an offensive against the oil tanker Mercer Street in the Arabian Sea on Thursday, condemning accusations rolled out by the Israeli government following the attack.

Tel Aviv has reportedly received a "green light" from Washington and London to carry out a "response" to Iran for a Thursday attack against the Mercer Street, an oil tanker, in an incident attributed by all three countries to the Islamic republic, Israel's Kan reported Sunday.

According to the report, Israeli officials are currently discussing how and when to respond, with possibilities arising that an Iranian port or a military ship could be targeted.

Israel also plans to share additional intelligence with other countries in the region to "bring condemnation" on Iran. It is noted, however, that Tel Aviv believes the deaths of the two sailors in the attack were not intentional.