Nate, which currently has winds of 95 kilometres (60 miles) per hour, is forecast to reach hurricane strength by the time it makes landfall in the United States late today or early tomorrow, on the north coast of the Gulf of Mexico.
New Orleans, which was ravaged by Hurricane Katrina in 2005, leaving hundreds dead, and other cities on the US Gulf coast were under hurricane watch.
The US National Hurricane Center (NHC) warned of possible "hurricane conditions" by last night on Mexico's Yucatan Peninsula, home to Cancun and other Caribbean resorts.
Governor Carlos Joaquin said the storm was expected to pass just east of the peninsula, but warned that torrential rains could trigger an emergency anyway.
Authorities cancelled school in seven coastal towns and declared an orange alert for the northern half of Quintana Roo state.
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