With Russia firmly in charge of Group D, Israel's task is to stay on the heels of Portugal, who began the night two points ahead of them.
Israel held up their end with first half goals from Tomer Hemed and Eden Ben Basat, and a second from Hemed early in the second half.
Hemed got the first in the 13th minute, firing in from Bebras Natcho's pass, but it was Ben Basat's fine lobbed finish that caught the eye 10 minutes before the break.
Hemed's second three minutes after the restart, an excellent header from Elad Gabai's cross, seemed to suggest a rout could be on the cards.
But instead Luxembourg stood firm, limiting Israel to a handful of chances, most of which failed to trouble Jonathan Joubert.