[Analyst: U.S.-Iran Talks Collapse Embeds Uncertainty, Dollar to Strengthen in the Short Term] Odaily Planet Daily News – Pepperstone strategist Dilin Wu stated that the failure of the U.S. and Iran to reach an agreement has firmly embedded uncertainty. In the very short term, a stronger dollar accompanied by a slight decline in U.S. Treasury yields is a fairly reasonable pricing outcome. After the initial shock from the news subsides, the reaction of U.S. Treasuries may become more complex. Short-term yields may still edge lower due to safe-haven demand, but if oil prices continue to rise, they will soon re-anchor higher inflation expectations, thereby exerting new upward pressure on long-term yields. On Monday, it is also likely that the energy and defense sectors will outperform the broader market, with a noticeable upward gap at the opening. The energy sector is the most direct beneficiary of supply-side contraction, while the defense sector reflects the rise in geopolitical risk premiums and their more persistent nature. However, the magnitude of market volatility will depend on two key factors—the sustainability of the oil price rally and whether the market confirms this as a lasting supply shock rather than merely a short-term, sentiment-driven reaction. (Jin10)