India, July 27 -- Oil prices fell sharply on Monday after fighting between the United States and Iran paused, raising hopes that tensions in the Middle East could ease. The pause in fighting also lifted investor confidence, with stock markets rising as traders hoped energy supplies from the region would improve. Despite the calm, shipping routes in the Gulf remained risky, and vessels continued to face dangerous conditions. Oil prices had surged throughout most of July after the ceasefire between the US and Iran collapsed and fighting restarted.

Last week, Brent crude climbed above $100 a barrel after Yemen's Iran-backed Houthis threatened to block Saudi Arabia's ports in the Red Sea, expanding the conflict. President Donald Trump's deci...