Israel Katz, the foreign minister of Israel said on Tuesday that his country is bracing for possible military involvement in an escalation in the Gulf confrontation between Iran and the United States.

Speaking at an international security conference, Katz said: “It should be taken into account that mistaken calculations by the (Iranian) regime...are liable to bring about a shift from the ‘gray zone’ to the ‘red zone’ - that is, a military conflagration.”

Iran announced on Monday that it has exceeded the uranium enrichment limit allowed under the nuclear deal (JCPOA). In recent months tensions have increased between Iran and the United States with the intensification of sanctions by the United States and alleged attack against oil tankers and the Islamic Revolutionary Guard Corps (IRGC) shooting down an American drone.

Katz continued: “We must be prepared for this, and thus the State of Israel continues to devote itself to building up its military might for the event that it will have to respond to escalation scenarios.”

Earlier on Tuesday in a radio interview Katz said the U.S.-led economic war on Iran would succeed despite the misgivings of other world powers.

He added: “Iran has no chance in this war.”