Oil Prices Slide as Fed's Warsh Warns of Persistent Inflation

Oil prices took a hit on Friday as traders weighed in on Federal Reserve Chairman Kevin Warsh's comments about inflation. Warsh said that inflation remains too high and suggested interest rates may need to rise soon to bring it down.

In his first major speech at the Fed's annual conference, Warsh acknowledged that recent US reports show a slight cooling of inflation, but noted that underlying trends have not improved significantly.

Meanwhile, tensions in the Middle East continued to impact oil markets. The ongoing conflict between the US and Iran has resulted in reduced oil flows through the Strait of Hormuz, with only seven vessels transiting on Thursday compared to 17 a day earlier.

The situation remains fluid, with mediators working to resolve the issue and restore normal traffic through the strait.