European prices of natural gas soared on Monday, as concerns grow about a prolonged squeeze due to Russian supply cuts.

The Dutch TTF European natural gas benchmark jumped almost 20 percent at one point from last week's close. It hit nearly 290 dollars per megawatt hour, around seven times the level of a year ago.

The surge came after Russia's state-affiliated firm Gazprom said on Friday it will shut down a key pipeline to Germany for maintenance. It said the stop would last three days starting from the end of August.

Gazprom suspended supplies through the Nord Stream pipeline in July, also citing regular maintenance. It later reopened the pipeline. But deliveries remain at about 20 percent of the normal level.

Market sources worry that Russia could halt supplies for a prolonged period, and steadily rising prices could drive up European inflation.