The Royal Navy is "too small" and Britain wants to create a European-led maritime mission to protect ships sailing though the Strait of Hormuz, Foreign Secretary Jeremy Hunt has said.

It comes after U.S. Secretary of State Mike Pompeo said it was the responsibility if UK to "take care of their ships" - but added that the US "has a responsibility to do its part.”

Now, in a Commons statement, Mr Hunt described the seizure by Iran of a British-flagged tanker on Friday - in retaliation for a UK operation involving Royal Marines from Plymouth which saw an Iranian tanker seized near Gibraltar earlier this month - as an act of "state piracy".

"We will seek to put together a European-led maritime protection mission to support safe passage of crew and cargo in this vital region," said Mr Hunt.

"We have had constructive discussion with a number of countries in the last 48 hours and we will discuss later this week the best way to complement this with recent US proposals in this area."

Mr Hunt told MPs: ''It is with a heavy heart that we are announcing this increased international presence in the Gulf because the focus of our diplomacy has been on de-escalating tensions in the hope that such changes would not be necessary.''

He added: ''If Iran continues on this dangerous path, they must they must accept the price will be a larger Western military presence in the waters along their coastline, not because we wish to increase tensions but simply because freedom of navigation is a principle which Britain and its allies will always defend."

Mr Hunt also said the Royal Navy "has become too small" and extra funding must be found by the next prime minister, which could be him if he causes an upset and defeats Boris Johnson.

Conservative John Baron (Basildon and Billericay) asked if Mr Hunt agreed that a Royal Navy of fewer than 20 ships is "not up to the task" and called for increased defence spending.

Mr Hunt replied: "I might be straying slightly from my brief as Foreign Secretary but it won't surprise (Mr Baron) to know I am a supporter of increased spending on our armed forces.

"We had in many ways a golden period after the fall of the Berlin Wall where there was a peace dividend and we were able to reduce defence spending, but now we have to recognise there are increased dangers in the world - both in the Middle East and because Russia has become much more aggressive than it was previously.

"I think the navy in particular has become too small so I hope whoever the next prime minister is will reflect carefully on what we can do to bolster our great Royal Navy."

For Labour, shadow Foreign Office minister Fabian Hamilton said: "Iran's actions in recent weeks in the Strait of Hormuz have been utterly unacceptable and should be condemned from all sides."

He questioned why a British-flagged tanker was "left so hopelessly unprotected in the Strait of Hormuz when anyone with any understanding of this issue could see that this was exactly" how the Iranians would respond following the seizure of one of their tankers.

Mr Hamilton added: "When the measures the Foreign Secretary announced today, which are very welcome, could have been put in place a full 20 days before now, why was the Government's eye so patently off the crystal ball?"

He also asked about measures to de-escalate the tensions and "stop this tit-for-tat cycle of actions".

Mr Hunt, replying to Labour, said the UK has sought to de-escalate the situation but there "will be no compromise" on freedom of navigation in the Strait of Hormuz.

He said: "This is absolutely essential for the global economy and for global freedom of navigation.

"This country will not blink in that respect."

Former Tory leader Iain Duncan Smith asked what discussions the UK Government has had with the US to work together to protect British-flagged ships in the Gulf.

Mr Duncan Smith said: "We have known for some time that there was a heightened problem in the Gulf and our strongest ally was there with some force.

"Why was it that we did not request or agree with them that in the interim while we are getting the right resources into place, that they themselves do not act in concert with us to protect some of our shipping as they said they could have done?"

Mr Hunt said he wanted to reassure MPs that those "close behind the scenes discussions" with the United States were "happening throughout this period".

He added: "Those missions that (HMS) Montrose has been on, the 17 transits it has done, would not have been possible without US logistical support."

Responding to a question from the SNP's Foreign Office spokesman Stephen Gethins on the impact of the USA pulling out of the Iran nuclear deal, Mr Hunt said: "The Trump administration has a genuine and honest difference of opinion with us because it isn't a perfect deal.

"It was a deal that allowed sanctions relief for Iran but did not prevent Iran from supporting its proxies in Lebanon and Yemen and Syria and Iraq and allowed Iran to carry on destabilising the region."

Mr Hunt added: "We, however, feel that given that four years ago they were 18-months away from acquiring a nuclear weapon it is a huge diplomatic achievement that Iran does not today have a nuclear weapon as the Middle East would have been much more dangerous if they had."

Earlier, Mr Gethins said the UK Government had "taken its eye off the ball" over Iran.

He added: "This is a dangerous situation and there must be a clear understanding of what's going on as well as looking at ways to de-escalate the situation."

The Government has considered deploying troops aboard ships following the seizure of a British tanker by Iran.

Tory MP Richard Drax (South Dorset MP) said: "I do find it slightly intriguing, that lack of resources, bearing in mind what was going on in the Gulf."

He added: "It sounds like we are almost trying to appease Iran or fearing a reaction from Iran by sending too many resources there.

"If that is the case, perhaps another deterrent would be to put troops on these ships. I don't know where we are with that."

Mr Hunt replied: "This is absolutely not about appeasing Iran. It is about trying to see if there is a diplomatic avenue to prevent the seizure of British ships and giving the space for that diplomatic avenue to work while recognising that if that fails, and I am afraid it has failed because a British ship has been seized, we are going to have to take a much more robust military approach."

He added: "We have considered the idea that you mentioned to this House, but we have rejected it because we think it would make those ships a target and we would have the risk of Royal Marines being taken as hostage, which would create an even greater crisis.