0346 GMT - The volatility in markets is likely to pick up as the U.S. and Iran seek to strengthen their negotiation leverage, DBS Group Research's Chang Wei Liang says. Iran's refusal to attend second-round talks with the U.S. in Pakistan surprised markets, he writes in a note. However, any U.S. dollar rebound is expected to be restrained, as a re-escalation into conflict remains unlikely for now, the foreign-exchange and credit strategist adds. DBS senior rates strategist Eugene Leow notes that the normalization of energy export flows from the Strait of Hormuz remains in limbo amid an indefinite extension of the cease-fire, adding that markets appear complacent. "We are wary of asymmetrical downside risks to risky assets if a deal does not materialize." (kimberley.kao@wsj.com)
(END) Dow Jones Newswires
April 21, 2026 23:46 ET (03:46 GMT)
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