The US and UK are poised to ban Russian Oil, and the EU is sharply reducing gas imports as countries harden their response to the invasion of Ukraine.
Both the US and British governments are likely to make their announcements later on Tuesday.
The European Commission has just announced it will reduce demand for Russian gas by two-thirds - the EU gets 40% of its gas from Russia.
The measures are meant to hurt Russia, with its economy dependent on energy.
But such action could also send prices soaring. Investor fears of an embargo drove Brent Crude Oil to $139 (£106) a barrel at one point on Monday - its highest level for almost 14 years.
Russia earlier warned it may close its main gas pipeline to Germany if the West bans Russian oil.
US President Joe Biden is expected to make the announcement at 10:45 local time (15:45 GMT), US media reports. The White House has not confirmed the ban on oil, but said the president would be announcing further actions against Russia.
The move has political support. On Monday, senior Republicans and Democrats in Congress announced a bipartisan agreement to suspend normal trade relations with Russia and Belarus.
" Taking these actions will send a clear message to Putin that his war in unacceptable and the United States stands firmly with our NATO allies," they said. "We are committed to using the tools at our disposal to stop Russia's unconscionable and unjust war."
About 8% of US oil and refined product imports come from Russia.
President Joe Biden said Tuesday the U.S. will ban all imports of Russian energy, including oil and gas, the latest measure intended to cut off Russia economically. Biden said the move will target “the main artery of Russian economy,” as energy products are by far Russia’s primary exports. Several news outlets reported earlier Tuesday, Biden’s plans to announce the ban Tuesday morning following growing bipartisan support for the move.
Deputy Prime Minister Alexander Novak said a "rejection of Russian oil would lead to catastrophic consequences for the global market", causing prices to more than double to $300 a barrel.
The US has been exploring a potential ban with allies as a way of punishing Russia for its invasion of Ukraine.
But Germany and the Netherlands rejected the plan on Monday.
The EU gets about 40% of its gas and 30% of its oil from Russia, and has no easy substitutes if supplies are disrupted.
While the UK would not be directly impacted by supply disruption, as it imports less than 5% of its gas from Russia, it would be affected by prices rising in the global markets as demand in Europe increases.
I ain't Conn, the former boss of British Gas owner Centric, said natural gas was "less freely" traded compared to oil, and it would be "much more difficult" to replace Russian gas if supplies are affected as it is transported through fixed pipelines from country to country.
The price of Brent Crude - the global benchmark for oil prices - rose to around $130 a barrel on Tuesday following reports that the US and UK will announce its own ban on Russian oil imports.
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