Oil prices drop after US, Iran pause fighting over weekend

LONDON , July 27 : Oil prices tumbled more than 5 per cent on Monday after the U.S. and Iran paused strikes over the weekend following two weeks of attacks, raising hopes of a diplomatic solution that would de-escalate the conflict and allow shipping to resume in the Strait of Hormuz. Brent crude futures fell $5.70, or around 5.9 per cent, to $91.08 a barrel by 0804 GMT after briefly slipping under the key support level of $90 earlier in the session. U.S. West Texas Intermediate crude was at $84.51 a barrel, down $4.80, or around 5.4 per cent. Both contracts are trading at their lowest levels in nearly a week after rising for the past three weeks. Brent had reached $100 per barrel as the conflict, which reduced oil shipments via the Strait of Hormuz, spilled over to the Red Sea, hindering