(Reuters) -India's equity benchmarks declined on Friday and posted weekly losses as Israel's military strikes on Iran escalated tensions in the Middle East and dampened global risk sentiment.

The Nifty 50 was down 0.68% at 24,718.6 and the BSE Sensex fell 0.70% to 81,118.6.

Eleven of the 13 major sectors logged losses, on the day. The broader small- and mid-caps dropped 0.4% and 0.5% respectively.

Oil marketing companies BPCL , HPCL, and Indian Oil slid 1.6%-2% on worries that higher crude prices would erode refining margins.

Higher oil prices are a negative for India, which imports a bulk of its crude.

Globally equities also fell on Friday, while safe-havens including gold and the Swiss franc gained. Brent crude jumped 7.2% amid fears of supply disruptions. [MKTS/GLOB] [O/R]

Israel said it struck Iranian nuclear targets to block Tehran from developing atomic weapons, prompting retaliation from Iran, which launched 100 drones.

"The escalating Middle East conflict and potential Suez Canal disruption pose material risks to India's trade flows and could drive up fuel, fertilizer, and chemical costs," said Dharan Shah, founder of Tradonomy.AI.

"If tensions persist, inflation and market volatility could rise sharply."

Meanwhile, airline stocks Interglobe Aviation and SpiceJet lost 3.9% and 1.6% after an Air India plane crashed in Ahmedabad on Thursday, killing nearly all 242 people on board. They have lost 6.6% and 3.4%, respectively, in two sessions.

For the week, the Nifty and Sensex lost 1.1% and 1.3%, reversing gains from earlier in the week.

Uncertainty and lack of details around a U.S.-China trade deal also pressured markets, overshadowing optimism from easing domestic inflation and the central bank's bumper policy support.

"Any trade deal between U.S. and its key trading partners is likely to take longer and we are in the initial chapters of a prolonged trade dispute, which may spur inflationary pressures," said Sandeep Bagla, CEO of Trust Mutual Fund.

(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Sonia Cheema and Mrigank Dhaniwala)

By Bharath Rajeswaran