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Prices for crude %Oil are sliding lower amid heightened trade tensions and as U.S. President Donald Trump threatens tighter sanctions on Russia over the war in Ukraine.

West Texas Intermediate (WTI) crude oil, the U.S. standard, is down 1% and trading at $65.87 U.S. per barrel.

Brent crude oil, the international benchmark, is down 0.87% and trading at $68.11 U.S. a barrel amid grim news on the trade and geopolitical fronts.

The situation is dragging lower the stocks of major oil producers and refiners such as %Chevron (NYSE: $CVX ), %Shell (NYSE: $SHEL ), %BritishPetroleum (NYSE: $BP ), and %ExxonMobil (NYSE: $XOM ).

Crude prices are under pressure after President Trump threatened 35% tariffs on neighbouring Canada and 30% tariffs on imports from the European Union (EU) and Mexico starting Aug. 1.

The additional tariffs have heightened trade tensions and risk slowing global economic growth and energy demand.

At the same time, President Trump has said he will tighten economic sanctions on Russia unless President Vladimir Putin ends the war in Ukraine within 50 days.

There is media speculation that President Trump will impose sanctions on Russian energy exports, which are already high.

President Trump could also support a Senate bill that would levy 500% duties on China and India if they make any purchases of Russian crude oil or other energy products.

The current situation is raising geopolitical uncertainty and weighing on crude oil prices, say commodities analysts.

Additionally, there are reports that OPEC+ is considering a pause in further production increases starting in October, following its next increase in output this September of 548,000 barrels per day.

OPEC+ is reportedly growing concerned about a slowdown in global oil demand in the second half of this year that could lead to a supply glut if the group keeps boosting its production.