Mr Biden was asked if he would back such retaliation after Iran fired 180 missiles at Israel on Tuesday, but told reporters: "The answer is no."
Israel is understood to be weighing up attacks on Tehran's strategic infrastructure in response to the ballistic missiles fired at Tel Aviv, Jerusalem and other cities.
Mr Biden's response came after speaking with fellow G7 leaders by phone about coor dinating new sanctions against Iran.
The White House said the leaders "unequivocally condemned Iran's attack against Israel" and that Mr Biden reaffirmed America's "full solidarity and support to Israel and its people".
The President added that "there are things that have to be done" in response to the Iranian barrage. He said he expected sanctions from the G7 nations to be announced soon.
Mr Biden added: "We will be discussing with the Israelis what they are going to do. All seven of us agree that they have a right to respond." The office of Italian Premier Giorgia Meloni said the leaders expressed "strong concern for the escalation of these last hours" and emphasized that "a conflict on a regional scale is in no one's interest".
Mr Biden said that he planned to speak with Israeli Prime Minister Benjamin Netanyahu "relatively soon".
Targets being discussed by Israeli officials could include gas or oil rigs, and Iran's nuclear sites, it was said.
Targeted attacks on Iran's air defence systems are also possible responses.
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