Oil falls 1% on Israel-Hamas talks, U.S. inflation.

Oil prices dropped in early Asian trading on Monday, erasing gains from Friday. Israel-Hamas peace talks in Cairo eased fears of wider Middle East conflict. U.S. inflation data also weighed on interest rate cut prospects. Brent crude fell 1.1% to $88.50, rebounding slightly to $88.55. West Texas Intermediate (WTI) dropped 1% to $83.01.