Pakistan, Aug. 3 -- Global oil prices fell sharply on Monday as renewed hopes for diplomatic talks between the United States (US) and Iran eased concerns over supply disruptions in the Middle East, while investors reacted cautiously across global financial markets.

Read More: US-Iran conflict pushes oil prices higher

Brent crude futures dropped more than 4% to $83.88 per barrel after US President Donald Trump announced that talks with Iran were scheduled to take place on Monday. The planned negotiations follow Trump's decision to halt a previously anticipated military strike in an effort to reach an agreement aimed at reopening the Strait of Hormuz and addressing Tehran's nuclear programme.

The prospect of renewed diplomacy helped impr...