The frigate and supply ship had been due to enter the canal with the northbound convoy that moves daily at 6 a.m. (0400 GMT) on Monday.

The passage through the canal would be a first for Iranian naval vessels since Iran's 1979 Islamic revolution.

Meanwhile, during his weekly Cabinet meeting, Netanyahu said Israel viewed the movement as an Iranian power play.

"Today we are witnessing the instability of the region in which we live and in which Iran is trying to profit by extending its influence by dispatching two warships to cross the Suez Canal," Netanyahu said, according to a statement from his office.

"Israel views with gravity this Iranian initiative and other developments that reinforce what we have said in past years about the Israel's security needs."