Oil futures settled lower on Friday, capping a week dominated by a more than 5% loss across major global benchmarks. Market sentiment was dampened by hawkish monetary policy signals from the Federal Reserve, which raised concerns over U.S. economic activity and crude demand. Additionally, traders monitored diplomatic discussions aimed at stabilizing commercial navigation and reopening the Strait of Hormuz. Geopolitical uncertainty remained high as U.S.-Iran tension reached its sixth month without a formal settlement, even as talks between Iran and Oman progressed toward establishing regulated shipping lanes. However, potential supply risk premiums were outweighed by demand concerns after Fed Chair Kevin Warsh hinted at future interest rate hikes if core inflation remains stubborn. Brent crude for October delivery fell 0.43% on Friday to settle at $89.31 a barrel, losing 5.38% over the week. Traders will need to evaluate both supply-side developments in the Middle East and global demand dynamics in the coming weeks. If diplomatic efforts successfully reduce maritime transit risks in the Gulf while U.S. monetary policy remains tight, crude oil prices may face further consolidation or downward risk.
