Oil and gold once again came into focus in international markets, as the new military escalation between the United States and Iran revived fears of prolonged instability in the Middle East and renewed disruption to global energy flows.

Oil prices posted strong gains following the latest round of clashes between American and Iranian forces, a development that threatens to derail efforts toward an agreement to end the war, which has already lasted ten weeks.

Brent crude rose by as much as 2.9%, approaching $103 per barrel before trimming some of its gains. U.S. West Texas Intermediate traded near $96.

At the same time, investors are once again turning their attention to precious metals. Gold recorded gains as buying interest strengthened due to continued purchases by China’s central bank, despite the fact that the new clashes in the Middle East threaten to shatter the fragile ceasefire.

The spot price of gold stood near $4,720 per ounce, marking a weekly rise of 2.3%, after a marginal decline in the previous session.