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(FILES) In this file photo taken on April 27, 2022 the logo of Russia’s energy giant Gazprom is pictured at one of its petrol stations in Sofia, Bulgaria.

nikolay doychinov/Agence France-Presse/Getty Images

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European stocks slumped, the euro fell and natural gas skyrocketed after Russia said it was cutting off gas supplies through the Nord Stream 1 pipeline indefinitely.

The announcement, which supplier Gazprom blamed on technical issues after a three-day maintenance period, was interpreted as a political move as Western countries moved to implement a price cap on Russian oil, the latest sanction after Russia’s invasion of Ukraine.

The Stoxx Europe 600 SXXP, +1.52% dropped 1.2%, with automakers and chemicals companies among the hardest hit.

Of the major regional indexes, the German DAX DAX, +1.43% fell 2.7% and the French CAC 40 PX1, +1.41% lost 1.9%, while the oil producer heavy U.K. FTSE 100 UKX, +1.23% weakened by 0.7%.

Dutch TTF gas futures rocketed 26%. The euro EURUSD, +0.48% fell 0.4% to $0.9916, having briefly fallen below 99 cents for the first time in 20 years.

The moves come with Wall Street closed for the Labor Day holiday. U.S. stock futures wavered , with the lead S&P 500 ES00, +1.52% contract down less than a tenth of a percentage point. That came after a rough close on Friday, when the Dow Jones Industrial Average DJIA, +1.19% fell 338 points and the S&P 500 SPX, +1.53% declined 1.1%.