Speaking to Bloomberg, she said: “We have to take all the measures that are at our disposal.

“This will have a strong impact on consumers and the economy. But, needless to say, if there is a war ongoing in the neighboring country, you have to be ready for extraordinary measures yourself.”

Moscow has given no sign that it intends to curb gas deliveries and many analysts still believe the prospect remains unlikely. 

Tom Marzec-Manser, head of gas analytics at Icis, said: “Gazprom wants to remain considered a commercial entity delivering commercial gas to buyers who have a commercial commitment to purchase it,”

Germany’s economy minister, Robert Habeck, on Thursday reportedly spoke out against an embargo on energy imports from Russia, saying “we need these energy supplies” to maintain price stability and energy security. 

Writing on Twitter, Mrs Truss said: “My G7 counterparts and I agree we must reduce dependency on Russian fuel over time. 

“Together we will support Ukraine, degrade the Russian economy through sanctions and ensure Putin fails.”

The conflict has pushed global commodity prices up this week at the fastest pace in more than 50 years. Russia and Ukraine are key producers of wheat, while corn and soybeans are both up by more than one-quarter. 

Palladium, which is used in car production, is up by almost half, while nickel is up one-third, steel one-eighth and copper 7.5pc.

It leaves households facing the most serious cost of living squeeze in a generation as global prices feed through to the high street. Oxford Economics predicts inflation in the UK will peak at more than 8pc in April, rivalling 1991’s peak price rise of 8.4pc.

Holger Schmieding, chief economist at Berenberg Bank, cut back forecasts for eurozone GDP growth this year from 4.3pc to 3.3pc as a consequence of the war and rising commodities prices.

Chancellor Scholz pressures Gerhard Schroder to sever ties with President Putin

By Hannah Boland