Baghdad: Oil is heading for its biggest weekly gain in two months as tensions escalate. Oil is on track for its biggest weekly gain since July, after renewed hostilities between the United States and Iran heightened concerns about prolonged disruptions to energy flows through the Strait of Hormuz.

According to National Iraqi News Agency, Brent crude approached $96 a barrel, up more than 7% for the week, while West Texas Intermediate traded near $92. The escalation followed a period of relative calm, with the US bombing campaign earlier in the week met by an Iranian response targeting US bases in the region.