Oil heads for weekly surge as US-Iran tensions rattle global markets

Global oil prices were on track for strong weekly gains after renewed military tensions between the United States and Iran. 

Brent crude futures traded near $76.24 per barrel, while US West Texas Intermediate (WTI) crude hovered around $72.04. 

Despite modest movement, both benchmarks were set to record solid weekly gains, with Brent expected to rise around 6% and WTI about 5%. 

The latest rally follows renewed exchanges of military strikes between Washington and Tehran, which have further strained an already fragile ceasefire. 

Reports of explosions in southern Iran, including near the Bushehr nuclear facility, and continued security concerns have delayed the full reopening of the Strait of Hormuz.

Shipping activity through the waterway has slowed significantly as tanker operators reassess security risks.

Analysts say the restricted flow of vessels has kept upward pressure on crude prices despite some easing from this week's highs.

However, gains were capped by expectations that the United States and Iran could still return to diplomatic negotiations as Trump said he does not expect the renewed fighting to escalate into a prolonged conflict.