Pakistan, May 25 -- Global oil prices plunged nearly six percent on Monday as hopes grew for a possible peace agreement between the United States and Iran. Investors reacted positively to signs that negotiations could reopen the Strait of Hormuz and ease supply disruptions. The sharp decline pushed crude prices to their lowest levels in two weeks.

Brent crude futures dropped $5.85, or 5.7 percent, to $97.69 per barrel during early trading. US West Texas Intermediate crude fell $5.75, or six percent, to $90.85 per barrel. Both benchmarks touched their lowest prices since May 7 amid renewed diplomatic optimism.

Read more: Oil tankers resume Hormuz transit routes

US President Donald Trump said Washington and Tehran had "largely negotiated...