Natural gas prices in Europe rose 35% when markets opened on Monday, according to data from the London Stock Exchange ICE. Rising energy costs were driven by supply concerns over sanctions against Moscow following the conflict in Ukraine.
Russia provides around 40% of the continent's gas supply.
April futures at the TTF hub in the Netherlands hit $1,454 per 1,000 cubic meters.
The price hike comes amid sweeping anti-Russian sanctions imposed by the US, EU, UK and a host of other countries last week after Moscow launched a special 'demilitarisation' operation in Ukraine, which the West has called an act of aggression. .
To add fuel to the fire, the British oil and gas supermajor BP announced on Monday that it was leaving the Russian energy company Rosneft, also in protest against the operation in Ukraine.
Industry analysts fear the situation could lead to a disruption of Russia's gas supply to the global market.