The Treasury Department said new economic penalties will target Russia’s two largest oil companies, Rosneft and Lukoil, as well as their subsidiaries.

Vladimir Putin's ally Dmitry Medvedev has accused US President Donald Trump of an 'act of war' against Russia as global tensions rise

The Opec+ oil cartel began boosting production from April in a surprise move that caused oil prices to fall sharply. This followed Trump’s calls for Opec+ to increase supply in an effort to cool prices, ease inflation and squeeze Russia’s energy revenues.

A preparatory meeting between Secretary of State Marco Rubio and Russian Foreign Minister Sergey Lavrov was also canceled.