Oil Prices Fall as U.S.-Venezuela Deal Nears Amid Hormuz Tensions

Oil prices fell on Friday as markets weighed reports that the U.S. was nearing access to Venezuela's oil reserves, while tensions over the Strait of Hormuz persisted.

Brent crude futures declined 0.4% to $89.33 a barrel, while West Texas Intermediate crude futures fell 0.3% to $83.25 a barrel.

The drop in prices was due in part to reports that Iran and Oman had agreed to allow some traffic through the Strait of Hormuz, which supplied about a fifth of the world's oil before the U.S.-Iran war.

However, analysts cautioned that any actual supply increase would take time due to the extensive development needed in Venezuela's oil infrastructure.

Venezuela was considering leaving OPEC amid closer ties with Washington, marking the second major exit for the producer group after the United Arab Emirates announced its departure.