Oil prices fell Monday, as fresh peace talks between Israel and militant group Hamas in Cairo cooled bets of a wider conflict in the Middle East disrupting supplies.

At 14:15 ET (18:15 GMT), Brent oil futures fell 1.3% to $87.02 a barrel, while West Texas Intermediate crude futures fell 4.6% to $82.50 a barrel. 

Middle East peace talks 

In a sign of fresh hope for a temporary truce in the Gaza war, an Israel delegation is reportedly expected in Cairo on Tuesday just as Hamas weighs up Tel Aviv's latest deal that includes the exchange of hostages for a broader ceasfire.   

A Hamas delegation will visit Cairo on Monday for talks aimed at securing a ceasefire, a Hamas official told Reuters on Sunday, with the group expected to respond to Israel’s latest Gaza phased truce proposal delivered on Saturday.

Concerns that the conflict between Hamas and Israel would balloon into a wider war in the oil-rich region prompted sharp gains earlier this month, as traders worried that this could result in a big hit to supplies from the region.

Geopolitical tensions, tight supply bets persist 

The specter of geopolitical tensions and potential supply risks in oil markets still remained in play.

Ukraine attacked more Russian oil refineries over the weekend, while also calling on more military aid from the U.S. over worsening conditions on the front lines. 

Attacks on Russian refineries factored into bets on tighter supplies, especially as Russia announced more production and export cuts earlier this year.