Concerns have run high for some weeks about Iran stoking tensions, particularly around the Jan. 3 one-year anniversary of the U.S. killing of a top Iranian general in Iraq.
Iraqi factions supported by Tehran are hoping Biden could roll back Trump's policies, which included bombing hardline groups and slapping sanctions on pro-Iran figures.
"We will return to the US to re-impose sanctions so that the arms embargo will become permanent next week," Secretary of State Mike Pompeo said at a press briefing
A US media report, quoting unnamed officials, said that an alleged Iranian plot to assassinate the US ambassador to South Africa was planned before the presidential election in November.
The sanctions had been eased under the 2015 nuclear deal that President Donald Trump withdrew from two years ago.
A week ago, 11 small armed Iranian Revolutionary Guards Corps speedboats swarmed around US Navy and Coast Guard ships in international waters in the northern Gulf.
Tensions between the arch-foes flared in Iraq where the United States deployed Patriot air defence missiles prompting neighbouring Iran to warn of consequences and demand a US withdrawal.
An Iranian rocket failed to put a satellite into orbit on Sunday, state television reported, the latest setback for a program the US claims helps Tehran advance its ballistic missile program.
External Affairs Minister S Jaishankar noted that US-Iran developments have taken a very serious turn.
Nike announced they have been forbidden from providing football boots to Iran's squad during the tournament, on account of sanctions imposed against the country by the United States.
Russian President Vladimir Putin too sounded critical of the US decision, saying the move may destabilise the Gulf region.
Ivanka said she was inspired by the heroism and bravery of the peaceful protesters in Iran, who are seeking freedom from tyranny.