Oil dipped on Tuesday following Hamas and Israel ceasefire negotiations that took place in Cairo, contributing to calming market concerns about escalated disruptions in the Middle East, while distress regarding the interest rate trajectory impacted the market.

Brent crude futures slumped by 0.11% to $88.30 per barrel, while US WTI dropped 0.16% to 82.50 per barrel. The two contracts gave up over 1% on Monday.

After conferring with Qatari and Egyptian mediators over a reaction to Israel's proposal for a phased truce, Hamas negotiators departed Cairo late on Monday to confer with the organization's leadership.

Israeli bombings killed numerous Palestinians yesterday, with over half of the casualties occurring in the southern Gaza city of Rafah, which international officials had begged Israel not to attack, while Hamas leaders were in Cairo.

The Houthis of Yemen have persisted in their strikes on marine commerce south of the vital Suez Canal trade route, which has kept oil prices below floor and may lead to greater risk premiums if participants expect delays in the supply of crude oil.

Speaking of the economic aspect, investors are currently anticipating Fed’s review on the 1st May, with persistent inflation discounting market projections for rate trims, which will likely buoy the greenback and hinder the demand for oil.