New Delhi, June 15 -- New Delhi: Oil markets fell sharply on Monday as traders unwound geopolitical risk premiums tied to the West Asia conflict, after reports of a US-Iran peace deal prompted expectations of easing disruption through the Strait of Hormuz.

At 11.12am (India time), the August contract of Brent on the Intercontinental Exchange was trading at $83.57 a barrel, lower by 4.36% from its previous close. The July contract of the West Texas Intermediate on the NYMEX fell 4.70% to $80.89 per barrel.

Brent prices are down about 30% from near $120 a barrel on 2 March, after markets reopened following the US and Israel's attacks on Iran on 28 February.

Even if diplomatic momentum holds, analysts warn global crude flows are unlikely ...