MOSCOW (Reuters) - The Kremlin said on Tuesday that Russia was continuing its dialogue with the United States amid threats by President Donald Trump to levy secondary sanctions on Russian oil if Moscow does not work to end the war in Ukraine.

Oil diplomacy could become a hallmark of Donald Trump's second term in office, if the last few weeks are any guide, but energy markets have mostly shrugged off his recent whirlwind of threats against Iran and Russia.

Follow Bloomberg India on WhatsApp for exclusive content and analysis on what billionaires, businesses and markets are doing. Sign up here.Indian refiners have rushed back to the market to seek crude supply after President Donald Trump’s threat of more penalties against Russia raised concerns over potential disruptions to oil flows.

President Donald Trump has vowed to impose secondary tariffs on nations that purchase oil from Russia if Moscow fails to agree to a ceasefire in Ukraine. Why It Matters Secondary tariffs are a tool countries use to extend economic pressure beyond their borders.

Ukrainian President Volodymyr Zelenskyy called for further "tough measures" against Russia to push President Vladimir Putin into a ceasefire agreement.

The Kremlin said on Monday, after U.S. President Donald Trump said he was "pissed off" with Vladimir Putin, that the United States and Russia were working on ideas around a possible peace settlement in Ukraine and on building bilateral ties.

Trump said he was very angry after Putin last week criticized the credibility of Ukrainian President Volodymyr Zelenskiy's leadership.

President Trump said he could impose tariffs on nations that buy oil from Russia if it thwarts negotiations for a peace deal in Ukraine. He suggested the same step was possible for Iran.