Analyst: Failed US-Iran talks may cause oil prices to rise again, risk sentiment may be further hit.

Charu Chanana, Chief Investment Strategist at Shengbao Bank, said that the failure of the US-Iran negotiations is a step backwards. For the market, this means that previous easing trades are likely to fade away. Oil prices may rise again, risk sentiment will be hit once more, and the Strait of Hormuz, even if not completely closed, will still pose a realistic risk. However, considering the large gap in positions between the two sides on nuclear security and the Strait of Hormuz issue, this is not unexpected. As for the US dollar, this means that it will regain some safe-haven support, but unless there is a new military escalation, it is unlikely to trigger a total surge. Gold may benefit from the rekindled geopolitical hedging demand, but the market is not yet back to the worst inflation shock scenario.