Oil Prices Sink Amid US Rate Hike Rumors and Strait of Hormuz Tensions

Oil prices settled lower on Friday and for the week as traders evaluated hints about the US Federal Reserve's inflation-fighting policy and rumors of a possible agreement on shipping through the Strait of Hormuz.

Brent crude futures settled at $89.31 a barrel, down 39 cents or 0.43%, while West Texas Intermediate crude futures finished at $83.40 a barrel, down 13 cents or 0.16%.

The weekly decline would likely be due to the available volume that is able to exit the Strait and the pace of ramp-up in flows, according to Rystad analyst Janiv Shah.