( CNN ) -- U.S. authorities have issued a warning to U.S. citizens in Myanmar amid unrest between Buddhists and Muslims that has left at least 40 people dead in the past week . The violence that began last week in the city of Meiktila , in the central Mandalay region , has spread to other towns and fueled fears in the commercial capital , Yangon , that prompted stores to close in a popular shopping district Monday . The U.S. Embassy has responded to the violence and unease by warning U.S. citizens to avoid the Mingalar Market and Yuzana Plaza part of Yangon , the same area where the stores were shuttered Monday . `` A fight broke out in that area today as a result of ongoing tensions , resulting in a heavy police presence , '' the embassy said in a statement Monday . It said , though , that there were `` no known specific threats against U.S . citizens . '' Authorities clearing up the wreckage from last week 's riots in Meiktila have found eight bodies among the debris , increasing the number of dead from the previous total of 32 , the New Light of Myanmar , a state-run newspaper , reported in its Tuesday edition . During the clashes in Meiktila , which were reportedly set off by a dispute between a Muslim gold shop owner and two Buddhist sellers , rioters set fire to houses , schools and mosques , prompting thousands of residents to flee their homes . A state of emergency . The government declared a state of emergency in the city Friday , allowing the military to help reinstate order . But as the situation there appeared to calm , authorities reported arson attacks by groups of Buddhists in other towns in the region over the weekend . The unrest highlights the fragility of ethnic relations in Myanmar as it emerges from decades of military repression . Authorities have released thousands of political prisoners and pursued peace talks with rebel groups in the past two years . President Thein Sein , who has overseen the country 's initial moves toward democracy , vowed Monday `` to take action against those who led the violence and got involved in it and to expose those who flamed the conflict under the pretext of religion , '' the New Light of Myanmar reported . Thousands displaced . The U.N. humanitarian agency said Monday that the Myanmar government estimates that more than 12,000 people have been displaced by the unrest . `` They 're barricaded in schools and in a monastery , '' said Ashok Nigam , the U.N. resident coordinator in Myanmar . `` They 're currently receiving humanitarian assistance provided by the government . '' A Buddhist monk was reported to be among those killed when the violence initially erupted in Meiktila last week . But Win Htein , an opposition lawmaker for the area , has said that he believes the majority of the victims were Muslims . `` Most of the Muslims ' houses were destroyed and burnt down , '' he said Tuesday . `` Very few are left . '' Police confiscated weapons such as swords and machetes from groups of Buddhists -- some of them monks -- who were roaming the streets last week , officials said . Win Htein said Tuesday that the situation was improving in Meiktila , but that he was concerned that some young Buddhists were `` organizing their own security '' despite government warnings not to carry weapons . Meanwhile , unsubstantiated rumors of unrest in other parts of the country such as Yangon are spreading via text messages and social media , stoking fears among residents . In one example , Si Thu , a Buddhist employee of the United Nations who lives in a mainly Muslim neighborhood of Yangon , said Tuesday he was moving his family to stay at a relative 's home elsewhere in the city . `` I ca n't think of any political or religious aspects now , '' he said . `` I only know about how to protect my family . '' The New Light of Myanmar suggested that such rumors are being `` circulated by those with ill will who want to harm peace and stability . '' Concerns after previous unrest . The clashes in Meiktila and elsewhere have drawn expressions of concern from U.N. and U.S. officials . The sudden boiling over of tensions between Buddhists and Muslims in central Myanmar follows sectarian troubles that killed scores of people in the west of the country last year . Those clashes , in Rakhine state , took place between the Buddhist majority and the Rohingya , a stateless ethnic Muslim group . Most of the victims in that unrest were Rohingya . Tens of thousands more were left living in makeshift camps , and many of them have since joined those who attempt each year to flee to Thailand and Malaysia in flimsy boats . CNN 's Kocha Olarn and Elizabeth Joseph contributed to this report . Journalist Pho Wai Lin also contributed .
NEW : U.S. authorities warn citizens to avoid an area of Yangon amid tensions . Authorities in Meiktila find more bodies among the debris from riots last week . Thousands of displaced people are living `` barricaded in schools , '' the U.N. says . TL;DR NEW