Sources told NBC News that the Biden administration may delay promised military aid to Saudi Arabia.
Saudi Arabia has a contract to purchase 300 of the missiles from the US. According to the report, the Saudis need the missiles to defend against attacks from the Houthis in Yemen.
Some military officials are in favor of keeping the military relationship separate from the oil dispute, according to sources.
According to NBC News, aides have raised concerns that the supply of missiles could endanger US troops and civilians.
Saudi Arabia and Russia, two of the largest oil producers in the world, said earlier this month that they would cut oil production by two million barrels a day, which will cause prices to go up.
The White House has been trying to tame inflation and decrease gas prices.
In an interview with CNN earlier this month, President Joe Biden warned Saudi Arabia that there would be consequences for their actions with Russia.
According to a report from The New York Times, the White House believed they had struck a secret deal with Saudi leader Mohammed bin Laden to increase oil production.
They were angry when they were surprised by the decision to cut oil output.
Multiple sources say that the Biden administration won't make a decision on how to respond to Saudi Arabia for some time.
It's possible to exclude Saudi Arabia from upcoming military exercises and regional engagements.
In response to the oil decision, Sen. Chris Murphy suggested moving US air defense systems from Saudi Arabia to Ukraine.
One US official told NBC that there needs to be a balance between punishing the Kingdom of Saudi Arabia and not making life harder for the US.