Saudi Crown Prince Mohammed bin Salman has given an ultimatum to the United States, warning of "major economic consequences" after President Joe Biden vowed "consequences" for the Kingdom after it slashed oil production last year.

The allegation came in a report from The Washington Post newspaper on Thursday based on classified US intelligence documents released on the videogame-centric Discord messaging app.

Crown Prince Mohammed privately threatened to sever ties and retaliate economically as Washington sought to lower energy prices in a bid to tamp down on rampant inflation that continues to be a thorn in the side of the Biden administration.

In essence, the Saudi crown prince warned that any consequences would be met with a fundamental overhaul of the US-Saudi bilateral relationship, the Post reported.

The document obtained by the Post says Mohammed bin Salman said “he will not deal with the US administration anymore," and vowed "major economic consequences for Washington.”

Biden did not ultimately impose any penalties on Riyadh for its decision to dramatically curtail oil output, and Saudi Arabia has subsequently gone on to further slash production in an effort to drive prices higher.

Reaction from US, Russia

It is unclear if the ultimatum ever made its way directly to US officials, or was picked up as part of intelligence collection efforts. But the White House told the newspaper that "we are not aware of such threats by Saudi Arabia."

"In general, such documents often represent only one snapshot of a moment in time and cannot possibly offer the full picture," a National Security Council spokesperson said.

"The United States continues to collaborate with Saudi Arabia, an important partner in the region, to advance our mutual interests and a common vision for a more secure, stable, and prosperous region, interconnected with the world," they added.

In response to the claims by the Post, Russia warned the US against telling Riyadh what to do, saying Saudi Arabia is a sovereign state and "is capable of making its own decisions."

"Saudi Arabia is a sovereign state, a responsible state, and a very important player in the international energy markets," Kremlin spokesperson Dmitry Peskov said told a press briefing in Moscow.

"Of course, this sovereign state is capable of making decisions that concern its own economy. Hardly anyone, even the US, should lecture (Saudi Arabia) on how to be in this or that case."

To prop up prices, Riyadh on Sunday pledged to cut its oil output by 1 million barrels per day (bpd) in July.