The Euro dropped to a two-decade low against the U.S. dollar on Monday morning, gas prices soared and major European stock indexes dipped after news Russia had halted gas flows through a critical conduit for the foreseeable future.
The Russian government said that the Nord Stream 1 would be shut down.
The euro dropped below $0.99 for the first time in 20 years on Monday, as it continued its slide against the U.S. dollar.
The British pound fell to its lowest level against the U.S. dollar in more than two years on Monday.
Germany's Dax was down 3%, France's CAC was 2.31%, and Spain's Ibex was 2%.
As the country prepares to name its next prime minister and battles soaring inflation, London's blue-chip index was down 1.11% Monday morning.
Dutch TTF October, a key European benchmark, jumped 30% on Monday.
European gas prices jumped as high as 282 euros per megawatt hour on Monday morning, shy of August's record high. Analysts think gas prices will reach new records this week.
Russia's state-controlled energy firm said on Friday that the Nord Stream 1 line would remain closed indefinitely due to an oil leak. The main conduit of gas from Russia to Europe is accused of being weaponized by Moscow to retaliate against sanctions. Europe used to rely on Russia for 40% of its natural gas. The already-turbulent market has worsened due to the cuts to the flow of gas. Europe is facing an energy crisis due to soaring prices and dwindling supplies, and countries are worried about a tough winter. The Kremlin insists that it is not playing politics with its resources, and blames sanctions for being unable to properly service equipment. European officials disagree with the idea that the equipment Russia claims is faulty should not stop gas delivery.
For the first time in 20 years, the euro and dollar are equal.
The Nord Stream 1 is shutting down.
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