New Delhi, July 28 -- Crude oil prices extended their decline in Tuesday's trade, falling more than 5%, as growing hopes of a diplomatic breakthrough between the United States and Iran eased concerns over potential supply disruptions.

The international benchmark Brent crude dropped another $5 per barrel, or 5.7%, to an intraday low of $80.67. The US benchmark WTI crude also remained under pressure, falling $4, or 5%, to $77.83.

After rallying sharply in recent weeks, oil prices have cooled following the US decision to pause military strikes on Iran over the weekend. Fresh reports of renewed diplomatic engagement have further reduced the geopolitical risk premium embedded in crude prices.

The latest optimism stems from diplomatic effort...