Oil prices retreat amid anticipation of ceasefire talks between Israel and Hamas

Oil prices fell on Monday as ceasefire talks between Israel and the Islamic Resistance Movement (Hamas) in Cairo calmed fears of a broader conflict in the Middle East, while US inflation data reduced the possibility of cutting interest rates soon.

By 1245 GMT, Brent crude futures for June, which expire on Tuesday, fell 70 cents, or 0.8 percent, to $88.80 per barrel.

According to Reuters, July futures contracts, the most widely traded, fell 52 cents, or 0.6%, to $87.69 per barrel.

US West Texas Intermediate crude futures fell 58 cents, or 0.7%, to $83.27 per barrel.

Israeli air strikes killed at least 25 Palestinians and injured many others on Monday, as Hamas leaders arrived in Cairo for a new round of talks with Egyptian and Qatari mediators.

Egyptian Foreign Minister Sameh Shoukry said that Egypt is optimistic, but is awaiting a response to the proposal from Israel and Hamas.

“With little new news, the potential easing of the Gaza (crisis) will lead to a decline in oil prices,” said John Evans of oil brokerage PVM.

Markets are also awaiting the Federal Reserve’s (US central bank) monetary policy review on May 1.

The rise of the dollar makes oil more expensive for holders of other currencies.

Monthly inflation in the United States rose slightly in March, dampening expectations of interest rate cuts in the near future.