By Kanishka Singh and Marie Mannes

WASHINGTON/STOCKHOLM (Reuters) -The U.S. embassy in Sweden said on Monday Americans in the country are "advised to exercise increased caution" due to local media reports on Iran potentially pressuring local criminal gangs to attack U.S. and Israeli interests.

Washington struck Iran's nuclear sites over the weekend and Iran targeted a U.S. base in Qatar on Monday in retaliation. The U.S. State Department on Sunday issued a worldwide caution security alert for Americans living overseas.

Analysts have warned that Iran, with its military weakened by Israeli strikes, could retaliate in non-traditional ways, including by activating proxy groups against American and Israeli interests worldwide.

U.S. ally Israel's war with Iran began on June 13 when Israel struck Iran. The air war raised alarms in a region that was already on edge since the start of Israel's war in Gaza in late 2023.

"Swedish media reports that Iran may be pressuring local criminal gangs, including the Foxtrot Network, to carry out attacks in Sweden against U.S. and Israeli interests. U.S. citizens in Sweden are advised to exercise increased caution," the U.S. embassy in Sweden said in a security alert.

The alert was issued before President Donald Trump said on Monday Iran and Israel had agreed to a ceasefire. It urged Americans in Sweden to avoid crowds and demonstrations and keep a low profile.

The Swedish criminal gang Foxtrot was accused in April by Britain of committing violence against Jewish and Israeli targets in Europe on behalf of Iran's government, a claim Iran rejected. Washington sanctioned the group in March.

The embassy's alert did not identify the report it was quoting. A report by the Swedish public broadcaster on Sunday said Foxtrot and its leader were in the past few days pressured to carry out new attacks against Israelis and Americans.

Sweden has suffered from a wave of gang-related violence for over a decade, including in recent months against buildings linked to Israelis or Israeli business.

A Sunday advisory from the U.S. government warned of a heightened domestic threat environment.

(Reporting by Kanishka Singh and Marie Mannes; Editing by Don Durfee and Sonali Paul)