Oil prices surge as hopes for quick end to war dim

The price of Brent crude oil pushed past $125 a barrel early Thursday as stalled U.S.-Iran talks raised doubts over the reopening of the Strait of Hormuz and a permanent end to the Iran war.

Brent crude to be delivered in June jumped 6.2% to $125.36 and Brent to be delivered in July rose 3.1% to $113.85. Benchmark U.S. crude climbed 2.3% to $109.38 per barrel. Before the start of the war in late February, Brent crude was trading around $70 per barrel.

There is still no clear path to an end to the war, which is in its ninth week. The U.S. has continued its blockade of Iranian ports while the Strait of Hormuz is effectively closed, pushing oil prices higher. Reports Thursday suggesting an possible escalation by President Trump doused hopes for a quick end to the conflict.

"The breakdown of talks between the U.S. and Iran, along with President Trump reportedly rejecting Iran's proposal for a reopening of the Strait of Hormuz, has the market losing hope for any quick resumption in oil flows," ING Bank strategists Warren Patterson and Ewa Manthey wrote in a research note.

Oil prices vary depending on the type of crude oil, where it is being traded and under what terms, for futures contracts. By some measures, Brent has hit its highest level since its peak of $147.50 per barrel in 2008 during the global financial crisis.