By Helen Clark MELBOURNE, May 6 (Reuters) - U.S. oil futures fell on Wednesday morning by over $2 after U.S. President Donald Trump said an operation to reopen the Strait of Hormuz will be paused for a short period to see whether an agreement can be finalised and signed.

However, bankers cautioned that crude has recovered from its ‌lows, while uncertainty over whether current U.S.–Iran optimism will translate into a breakthrough is likely to cap the rupee's upside.

So the market’s reaction to Tuesday’s reversal of the US decision to provide escorts for selected vessels through the Strait of Hormuz, and then an Axios story saying a peace deal was close, should no...