Berlin, Jun 23 (IANS): German Chancellor Angela Merkel on Saturday said the world should work together for peaceful resolution of the dispute between Iran and the US, and warned against isolationism.

"I say that (a political solution) should not just be a hope, but it should be worked towards with the utmost seriousness," Merkel told audience at a gathering of Protestant churches in Dortmund, Xinhua reported.

Tensions in the Gulf region have escalated after the attacks on two oil tankers in the Gulf of Oman. The US has accused Iran of doing it but Iran denied it.

Iran has also downed a US military drone. US President Donald Trump then approved an air strike against Iran but later he called it off.

The conflict would be addressed at the G20 summit in Japan next week, said Merkel, adding that Germany can help to make what it wants, that is a political and diplomatic solution.

The German Chancellor also warned against those who isolate themselves from the international community, without naming anyone although she has always been criticising Trump's decisions to withdraw the Iran nuclear deal and the Paris Climate Agreement.

She said that no country could tackle the global challenges of the 21st century alone.

"In some places distrust seems to have been declared government policy... Without trust as a foundation, international politics cannot succeed."