Oil declines as investors await truce talks in Gaza war

Oil prices experienced a decline in early trading on Tuesday as ceasefire discussions between Israel and Hamas in Cairo provided a sense of relief, easing concerns about the escalation of conflict in the Middle East. However, apprehensions regarding the outlook for US interest rates weighed on the market sentiment.

By 0423 GMT, Brent crude futures edged lower by 10 cents, or 0.11 percent, to $88.30 per barrel, while US West Texas Intermediate crude futures dipped 13 cents, or 0.16 percent, to $82.50 per barrel.

Following talks with Qatari and Egyptian mediators over the weekend’s truce proposal from Israel, the Hamas delegation departed Cairo late on Monday to confer with the movement’s leadership regarding their response.

Investors are now eagerly anticipating the upcoming meeting of the US Federal Reserve (central bank) scheduled for May 1. Persistent concerns about inflation at its current levels have led to expectations that the Fed will refrain from reducing interest rates. Such a scenario could strengthen the dollar and potentially dampen demand for crude oil in the market.