HONG KONG (AP) - The price of Brent crude oil witnessed a dramatic increase, surpassing $125 a barrel early Thursday. This surge is largely attributed to the stalled negotiations between the United States and Iran, which have raised significant concerns regarding the reopening of the strategically critical Strait of Hormuz and the prospects for a permanent resolution to the ongoing Iran war.

On Wednesday, Brent crude for June delivery jumped by 6.2%, reaching $125.36 per barrel. Meanwhile, Brent for July delivery saw a 3.1% increase, climbing to $113.85 per barrel. This sharp rise in oil prices marks a significant shift compared to conditions before the outbreak of the war in late February when Brent crude was trading at approximately $70 per barrel.

The Iran war, now entering its ninth week, continues to exhibit no clear path toward resolution. The U.S. has maintained its blockade of Iranian ports, further exacerbating the situation. Additionally, the closure of the Strait of Hormuz, a vital oil shipping route that facilitates a substantial amount of the world's oil supply, is contributing to the upward pressure on prices.

As a result of these heightened tensions in the global oil market, there has been a noticeable decline in U.S. futures and share prices across Asian markets. The persistent instability in oil supply chains, particularly due to geopolitical conflicts, leads to increased uncertainty among investors and market participants alike.

The implications of soaring oil prices extend beyond just market performance; they can significantly impact economies worldwide, influencing inflation and consumer behavior. As Brent crude remains volatile, the economic outlook will heavily depend on the developments in U.S.-Iran relations and their potential effects on oil supply continuity.