Hamilton should have finished runner-up at Spielberg’s Red Bull Ring, but took the chequered flag in fourth.
He sustained damage to the rear of his Mercedes after running wide on the exit of Turn 10 shortly before he stopped for tyres on lap 32 of 71.
Mercedes attempted to offer a wounded Hamilton a buffer in the form of team-mate Valtteri Bottas.
But with the brilliant Lando Norris breathing down Bottas’ neck, Hamilton was told to trade positions with his team-mate on lap 52. Norris then swept by two laps later on the young Briton’s finest afternoon of his three-season Formula One career. Norris finished third.
Hamilton’s costly mistake means he has failed to finish on the podium in three of the last five races. He has not won since the Spanish Grand Prix on 9 May.
And the errors are adding up. Hamilton fell off the road at a rain-hit Imola in April and threw away an unlikely win at last month’s Azerbaijan Grand Prix when he fluffed his lines at the restart.
Team principal Wolff defended his £40million-a-year man, insisting the damage sustained was not Hamilton’s fault, but conceded the Briton faces a tall order to usurp Red Bull’s flying Dutchman.
“Of course, losing every point is a blow,” said Wolff. “Lewis lost six points compared to finishing second and adding that all up is making the momentum go in the wrong direction.
“Losing 14 points [to Verstappen] is not great and it is against the odds for us now.
“But this is far from over. He is 32 points behind Max, which is a DNF [did not finish] away, and then he is in the hunt again. We need to up our game, make less mistakes and continue to understand the car better.”
Hamilton will head to Silverstone for the British Grand Prix in a fortnight’s time desperate to reverse the fortunes in his stuttering title defence. Mercedes cancelled the seven-time world champion’s scheduled print media commitment on Sunday evening .
Speaking to Sky Sports moments after stepping out of his cockpit, Hamilton said: “I wasn’t going over the kerbs more than anybody else so I have no idea where the damage happened.
“I would have finished an easy second and all of a sudden it broke. It is a lot of points lost today.