problem solved guys.
Thanks for help and time for this stupid issue.
Here is what I need to do:
1- When I run xhost as root here is what I get:
Xlib: connection to "127.0.0.1:0.0" refused by server
2- But what I really need to run is below which then I can run xclock under any user account including oracle which solves the issue.
[root@unknown /etc] - xhost +
access control disabled, clients can connect from any host
This solved the problem.
But my unknow host delma stays there.