Senate Foreign Relations Committee chair Senator Bob Corker (R-TN) said in a statement, "No longer will Iran be given a pass for its repeated ballistic missile violations, continued support of terrorism, human rights abuses and other hostile activities that threaten global peace and security".
Three U.S. warships are near the strait, the U.S. defense official said on the condition of anonymity.
The sanctions would be implemented under existing executive orders covering terrorism and weapons of mass destruction.
If true, the sanctions would be yet another step in this week's dangerously escalating tensions between the two countries.
In response to rebukes and warnings related to Iran's recent missile test from President Trump and members of his administration, Iran has struck a defiant tone against the USA, claiming the missile tests do not violate any United Nations resolution or the nuclear agreement. Iran had enjoyed a period of relative rapprochement with the USA under previous president Barack Obama however the Trump administration has promised a far tougher stance.
The U.S. has sent a guided missile destroyer off the coast of Yemen on a presence operation following a suicide boat attack on a Saudi frigate this week, a defense official confirmed to USNI News. Only after prompting by a reporter did he correct himself saying that the attack was on a Saudi Arabian vessel.
Trump said on Thursday "nothing is off the table" in dealing with Iran, a day after his national security adviser, Michael Flynn said he was putting Iran 'on notice'.
The UAE is a key partner in the Saudi-led coalition that intervened in Yemen in March 2015 after rebels stormed the capital Sanaa and advanced on second city Aden.
Tehran insists its missile tests do not breach any United Nations resolution because they are exclusively for defense purposes and not created to carry nuclear warheads.
The Trump administration is continuing to make reckless threats against Iran.
Earlier this week Iran announced that it would impose "reciprocal measures" in response to Trump's "Muslim ban" executive order issued last Friday, which targets Iran and six other Muslim majority countries.
That resolution is separate to the nuclear deal agreed a year ago, which lifted other sanctions in return for Iran scaling down its nuclear programme.