After more than doubling last week, European gas prices leapt to €345 (£285) a megawatt-hour. Motorists will feel the pinch, as prices at the pump could rise higher in tandem with jumps in the cost of crude oil. Drivers should not expect relief at petrol pumps soon, motoring group RAC has warned.

The average price of petrol has now risen above 155p a litre, setting yet another record and pushing the cost to more than £7 a gallon.

Holidaymakers may also see a rise in the price of plane tickets, as airlines pass on the cost of greater oil expenses. 

How to protect yourself from the oil price spike

Households and investors alike will feel the consequences of rising oil prices. The FTSE 100, the index made up of the largest companies in Britain, has crashed to its lowest level in a year as soaring oil prices fuelled inflation fears.

While global stock markets suffer, there remain a few traditional safe havens that could offer investors some shelter, such as gold. The price of the precious yellow metal has jumped 6pc to $1,932 (£1,442) since the start of February.

While many savers may be looking for ways to protect their money, more aggressive investors may be on the hunt for opportunities to buy amid the chaos. Commodities may look like a compelling buy as oil prices continue to surge. 

However, investors should note the price of oil can be extremely volatile and buying a tracker could result in big losses. 

Jason Hollands, of Bestinvest, said a fund invested in oil companies would be a safer bet, such as the Guinness Global Energy fund, whose top holdings included American energy giants such as Exxon Mobil and Chevron. It has delivered returns of 50pc in the past year. 

What will the oil price do now?

Market traders are betting on prices rising further yet, particularly on the back of the latest surge. 

Some traders expect they could hit $200 before the end of March. At least 200 contracts for the option to buy May Brent at $200 a barrel traded this morning, according to Bloomberg data. 

Meanwhile, giant asset manager JP Morgan has predicted that Brent could end the year at $185 a barrel if there is continued disruption to Russian supplies.