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Iran-Israel Tension
The US embassy said staff had been told not to travel outside the greater Jerusalem, Tel Aviv or Beersheba areas "out of an abundance of caution".
Iran has vowed to retaliate, blaming Israel for a strike on its consulate in Syria 11 days ago, killing 13 people.
UK Foreign Secretary Lord Cameron has phoned his Iranian counterpart to urge against further escalation.
Israel has not claimed responsibility for the consulate attack but is widely considered to have been behind it.
Iran backs Hamas, the armed Palestinian group fighting Israel in Gaza, as well as various proxy groups throughout the region, including some - such as Hezbollah in Lebanon - that frequently carry out strikes against the Israelis.
Those killed in the consulate attack included a senior commander of Iran's elite Quds Force in Syria and Lebanon, as well as other military figures.
The attack came at a time of continuing diplomatic efforts to prevent the war in Gaza spreading across the region.
Speaking on Wednesday, US President Joe Biden warned Iran was threatening to launch a "significant attack" and vowed to offer "ironclad" support to Israel.
Israeli Prime Minister Benjamin Netanyahu said his government was ready to meet any security challenge, warning that Israel would harm any country that caused it harm.
Israeli defence minister Yoav Gallant has told his US counterpart that "any direct Iranian attack" on Israeli territory would "require an appropriate Israeli response against Iran".
Asked about the travel restrictions on Thursday, state department spokesperson Matthew Miller said he would not disclose the "specific assessments" behind them, but added: "Clearly we are monitoring the threat environment in the Middle East and specifically in Israel."
The UK Foreign Office has also updated its travel advice for Israel to state that the country's government has raised the "possibility of an attack on Israeli territory from Iran, and that such an attack could trigger wider escalation".
Since the Hamas-led attack on Israel on 7 October, the Foreign Office has warned against travel to large parts of Israel and the Occupied Palestinian Territories.
France similarly warned its citizens to "imperatively refrain from travel in the coming days to Iran, Lebanon, Israel and the Palestinian territories".
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