WASHINGTON—The Trump administration is considering intervening in the Saudi-Russian oil-price war with a diplomatic push to get the Saudis to cut oil production and threats of sanctions on Russia aimed at stabilizing markets, according to people familiar with the matter.

The new strategy follows lobbying from U.S. oil companies asking for the Trump administration to ramp up its diplomatic intervention in the oil markets, the people said.

The aim would be to find a way out of a price war, triggered by friction between Russia and Saudi Arabia, that has sent crude prices crashing and put dozens of U.S. producers at risk of bankruptcy.

The U.S. would ask the Saudis to return to their original, lower production levels from before their decision earlier this month to rapidly boost their output, according to one administration official familiar with the decision.

The Trump administration would engage with the Saudis through State Department diplomats and the White House directly, by way of its National Security Council.

The U.S. is also weighing possible sanctions against Russia, according to the administration official, although the details of those possible sanctions and what Russian action might trigger them weren’t available.

The White House didn’t immediately return a request for comment.

U.S. officials are also exploring more long-term solutions, especially more collaboration with Saudi Arabia to keep it from returning to an alliance with Russia, according to several people familiar with the matter.

https://www.wsj.com/articles/u-s-considers-intervention-in-saudi-russia-oil-standoff-11584636054