The most dramatic Formula 1 title fight in at least a decade further intensified when Horner and Wolff traded barbs at the same time the FIA denied Mercedes' right to appeal last week's non-penalty on championship leader Max Verstappen.
Red Bull's Sergio Perez, racing in front of his home fans at the spectacular Autodromo Hermanos Rodriguez, was fourth at 0.570sec behind his teammate.
Verstappen complained on team radio that Hamilton was a "stupid idiot" and never seemed to recover his poise, ending the session eighth fastest.
Perez, who was out of contract with Racing Point, will race alongside Max Verstappen for the Red Bull team in 2021.
Horner said Ferrari’s decision was encouraging for F1 and everyone involved in the business end of the sport.
The previous record for races in a season stands at 21. Twenty-two races were slated for 2020 but the pandemic reduced that to 17.
Albon has struggled for consistency in his second year in Formula One with Red Bull after a mid-season switch from Toro Rosso last year, his rookie season.
Formula 1: Honda to withdraw from Formula One at end of 2021 season citing 'environmental initiatives'
Honda is the engine supplier for the Red Bull and AlphaTauri teams. It had resumed competition in F1 in 2015.
On a day of personal and family landmarks, Max Verstappen passed his father Jos as the Dutchman to have started most Formula One races and confirmed himself as the Netherlands most successful driver.
Formula One has a perfect opportunity to experiment with back-to-back races in Austria in July but champions Mercedes are standing in the way, Red Bull boss Christian Horner said.
Formula 1: Renault's Daniel Ricciardo expects sport's return to be chaotic after lengthy delay caused by COVID-19
Ricciardo, isolating in Perth since his home race in Melbourne was cancelled in March, has not driven his Renault since the last day of testing in Barcelona at the end of February
Ferrari have said they remain committed to Formula One after reports that the sport’s oldest and most successful team could walk away if a proposed budget cap for 2021 was set too low.
Formula 1 will have to reduce number of personnel, media before beginning season behind closed doors
Formula One’s season has been stalled in the pits, with seven postponed races so far and organisers talking of a much-revised and reduced calendar possibly running into the New Year
Formula 1 2020: Mercedes' Lewis Hamilton set sights on breaking records of Ferrari great Michael Schumacher
Formula One starts a new season in Australia next week with Lewis Hamilton chasing records that some once thought would last a lifetime.
Formula 1 2020: Red Bull boss Christian Horner backs 'coming man' Max Verstappen, says no need for Lewis Hamilton, Sebastian Vettel
Lewis Hamilton and Sebastian Vettel boast 10 Formula One crowns between them but Red Bull have the 'coming man' in Max Verstappen and would say no to both, according to team boss Christian Horner.
Formula 1 2020: 'Lewis Hamilton is very good, but he is not God,' says Red Bull's Max Verstappen ahead of new season
22-year-old Max Verstappen won three races last year, finishing third overall in the championship, and is not about to be awed by anyone’s reputation
Formula 1 2019: Red Bull's Max Verstappen takes pole at Brazilian Grand Prix; Lewis Hamilton in third spot
Max Verstappen secured the second pole position of his career to mark his Red Bull boss Christian Horner's 46th birthday in style on Saturday when he topped the qualifying times for Sunday's Brazilian Grand Prix.
Formula 1: Thailand's Alex Albon rewarded for impressive performances with Red Bull second driver spot for 2020 season
Alex Albon — who will play second fiddle to the audacious Max Verstappen — sits in sixth spot overall with 84 points ahead of this weekend's Brazilian Grand Prix
Formula 1 2019: 'Not our weekend, bring on America,' says Max Verstappen after finishing sixth at Mexican Grand Prix
Max Verstappen had mixed emotions on Sunday after a stirring drive from the back of the field to finish sixth at the Mexican Grand Prix.
Formula 1 2019: Red Bull's Max Verstappen stripped of pole position at Mexican Grand Prix after failure to slow down for yellow flag
Max Verstappen was given a three-place grid penalty and stripped of pole position at the Mexican Grand Prix late on Saturday after race stewards ruled he failed to slow for a yellow flag following a dramatic crash which saw Valtteri Bottas bury his Mercedes into a trackside barrier.