Pakistan, July 27 -- Global oil prices fell about 5% on Monday after the United States and Iran paused military strikes over the weekend, raising hopes that diplomacy could reduce tensions and restore normal oil shipments through the Strait of Hormuz. Brent crude dropped $4.89, or 5.05%, to $91.89 per barrel, while US West Texas Intermediate (WTI) crude fell $4.67, or 5.23%, to $84.64. Both benchmarks reached their lowest levels in nearly a week after three consecutive weeks of gains.

The decline followed reports that US President Donald Trump had paused military attacks to allow more time for diplomatic efforts. Market analysts said investors welcomed the possibility of renewed negotiations, believing a peaceful solution could improve s...