April 29 Reuters Oil prices fell by more than 1 a barrel on Monday as IsraelHamas ceasefire talks in Cairo tempered fears of a wider Middle East conflict, while U.S. inflation data dimmed the prospect of imminent interest rate cuts.

Brent crude futures for June , which expire on Tuesday, were down by 1.25, or 1.4, to 88.25 a barrel by 1113 a.m. EDT 1513 GMT. The more active July contract fell 1.01, or 1.14, to 87.20 a barrel.

U.S. West Texas Intermediate WTI futures were down 1.19, or 1.4, at 82.66 a barrel.

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

Egypt is hopeful but waiting for a response on the plan from Israel and Hamas, Egyptian Foreign Minister Sameh Shoukry said.

With little other fresh news, the possible cooling of the Gaza environment sees oil prices slip, said John Evans of oil broker PVM.

Markets were also on watch for the U.S. Federal Reserve39;s May 1 monetary policy review, which could indicate the direction of the central bank39;s interest rate decisions.

The language and forward forecasts will be pored over by all market participants, PVM39;s Evans said.

Investors are cautiously pricing a higher probability that the Fed could hike interest rates by a quarter percentage point this year and next as inflation and the labor market remain resilient.

U.S. monthly inflation rose moderately in March, putting a…