US 'deeply concerned' by Israeli attacks on Al-Aqsa mosque worshippers
Israeli forces fired hand grenades, tear gas and live rounds on Friday when they stormed the holy site before dawn prayers. 400 Palestinians were also arrested.
Eight Palestinians remain in intensive care.
"We call on all sides to exercise restraint (and) avoid provocative actions and rhetoric," State Department spokesman Ned Price said in a statement.
"We urge Palestinian and Israeli officials to work cooperatively to lower tensions and ensure the safety of everyone".
Israeli forces have increased their presence in the occupied West Bank and are reinforcing a wall and fence barrier with the occupied territory following recent attacks inside Israel.
Prime Minister Naftali Bennett has given "full freedom" to the Israeli forces to respond to these attacks, warning there will be "no limits" to their campaign.
At least 15 Palestinians have been killed since then, mostly in raids in the West Bank city of Jenin and its surrounding areas.
Al-Aqsa is Islam's third-holiest site.
Last year during Ramadan, Israeli settlers and soldiers regularly stormed the sacred compound as Muslim worshippers gathered.
Hundreds of Palestinian worshippers were injured when Israeli soldiers stormed the mosque in May last year, to which Hamas responded by firing rockets from Gaza.
Israel then launched a military campaign on the besieged strip, leading to a devastating 11-day war that killed more than 200 Palestinians, including dozens of children.