The price of natural gas in Europe went up by as much as 36% on Monday after Russia stopped the flow of gas into Germany.
Dutch TTF futures, Europe's benchmark natural gas price, were last up 28.5% to 268 euros. They were on the verge of their biggest daily rise since May.
Electricity prices went up as a result of the surge in natural gas.
German baseload year-ahead power went up 23% to 625 euros per megawatt hour. At the beginning of the year, prices were just 50 euro, and at the beginning of the year, they were 200 euro.
In the last few months, Russia has stopped the flow of natural gas to Europe due to the strained relations between the two countries.
In July of this year, the flow of natural gas from Russia to Germany was reduced to 20% of capacity.
On Friday, the company said it wouldn't resume exports due to an oil spill in a turbine. After G7 finance ministers agreed on a plan to cap the price of Russian oil, the announcement was made.
While an oil leak at the last compressor unit still in operation was used as explanation, the surprise decision came shortly after the G7's announcement to initiate a price cap on Russian oil.
The energy war has gotten worse.
Natural gas prices in Europe have increased more than 300% this year. Natural gas gave the European Union 25% of its energy in 2020.
EU officials spent the weekend trying to come up with a plan to intervene in the energy market. The Czech Presidency of the Council of the EU is trying to get other European governments to back certain measures.
Europe is set to lose 4% of its natural gas supply, according to a report.
While storage levels across the Euro area have grown rapidly in recent weeks due to surging imports of Liquefied Natural Gas, the prospect of rationing and further initiatives to curb demand for gas and power prices will be the focus this week.
Markets were affected by the European energy shock. The euro fell below $0.99 for the first time in 20 years, and the stock index in Europe dropped.
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