Facing growing pressure in an election year, Biden said he held Iran responsible for supplying the weapons to the people who carried out the deadly attack on a military base.
The White House warned that "multiple actions" were likely in retaliation for the first fatal attack on US forces in the region since the Israel-Hamas war broke out in October, but gave no further details.
Biden, 81, who was hitting the campaign trail in Florida, has previously blamed Iran-backed militias for the attack which has further raised fears of a regional conflict.
"Yes," Biden told reporters at the White House when asked if he had decided on his response, but he did not give details on what actions he would take.
"I don’t think we need a wider war in the Middle East. That’s not what I’m looking for," he added when asked about fears that taking on Iran could inflame a broader conflagration.
Iran has denied any links to the drone strike, and said it was not seeking an expansion of conflict, either.
'Multiple actions'
Republicans have urged the Democrat to punish Iran for the drone strike on a US military facility near the Jordanian-Syrian border Sunday, with some urging direct strikes on Iran itself.
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