Oil prices closed lower on Friday as Federal Reserve Chairman Kevin Warsh indicated possible interest rate increases later this year to fight inflation and traders weighed diplomatic moves to restore Strait of Hormuz shipping. Brent crude settled at $89.31 a barrel, down 0.43%, and West Texas Intermediate at $83.40, down 0.16%, leaving weekly losses of more than 5% for Brent and more than 4% for WTI. Phil Flynn of the Price Futures Group said higher rates typically curb petroleum demand and that speculation about a weekend Hormuz reopening agreement added pressure, even as refined product markets stayed resilient after Ukrainian strikes on Russian facilities. Iranian President Pezeshkian said the route agreed with Oman can open on the agreed map once the United States meets June ceasefire commitments, including lifting the naval blockade and sanctions, while Tehran drafted requirements after Qatari pressure. Traffic remained volatile, with only seven commercial vessels transiting on Thursday versus 17 on Wednesday, and Goldman Sachs put Gulf exports at 15 million to 16 million barrels per day, still 7 million to 8 million below pre-conflict levels. A 95,000-barrel U.S. inventory build marked a fourth straight weekly rise. Japan has sharply increased U.S. crude imports during the blockade but still draws about 60% of supply from the Middle East, as Gulf producers rely on shuttle tankers, ship-to-ship transfers and alternative pipelines.