Oil Prices Slide Amid Fed Speculation and Hormuz Rumors

Oil prices declined on Friday and for the week as investors considered hints about the US Federal Reserve's inflation-fighting policy and rumors of a possible agreement to reopen 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%.

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

The market was also influenced by tensions in the Middle East, with flows of oil through the Strait of Hormuz making a choppy recovery after the US announced its 'toughest sanctions in history' on Iran.