Oil Prices Slump Amid Fed Inflation Signals and Strait of Hormuz Uncertainty

Oil prices declined for the third straight week as traders weighed signals from the US Federal Reserve on inflation and speculation about diplomatic efforts to restore shipping through the Strait of Hormuz.

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

For the week, Brent declined more than 5%, while WTI lost over 4%, reflecting uncertainty surrounding global energy supplies and demand.

The Federal Reserve's indication that interest rates could be raised later this year to contain inflation weighed on market sentiment.

'The oil market is also being influenced by developments affecting refined-product supplies,' said Phil Flynn, senior analyst at Price Futures Group.

Ukrainian attacks on Russian refineries were supporting product markets, while speculation over a possible agreement to reopen the Strait of Hormuz was putting downward pressure on crude prices.