Brent Crude Falls Amid Fed Policy Hints and Rumors of Hormuz Deal

Oil prices fell on Friday, with Brent crude futures down 0.42% at $89.32 a barrel and WTI crude futures falling 0.43% to $83.17.

The decline came as traders evaluated hints about the U.S. Federal Reserve Bank's inflation-fighting policy and rumors of a possible agreement on shipping through the Strait of Hormuz.

Following comments by new Fed Chairman Kevin Warsh pointing to a possible rate hike later this year to curb inflation, oil prices descended further, said Phil Flynn, senior analyst at the Price Futures Group.

The market has been surprised by the additional flow of oil through the strait, particularly through the Iran-Oman shipping corridor and U.S. mine clearance claims, said Rystad analyst Janiv Shah.