Pakistan, Aug. 3 -- Oil prices fell more than five percent on Monday after US President Donald Trump postponed a planned attack on Iran. Investors welcomed renewed diplomatic efforts aimed at reopening the Strait of Hormuz and easing regional tensions.

Brent crude futures dropped $4.49 to $83.44 per barrel, while US West Texas Intermediate fell $4.90 to $79.77. The sharp decline followed Trump's announcement that negotiations with Iran could prevent further escalation.

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Trump said Iran and other Middle Eastern countries requested additional time to complete an agreement. Moreover, he said the proposed deal would reopen the Strait of Hormuz and address concerns ove...