* Futures down: Dow 1.06%, S&P 500 0.63%, Nasdaq 0.62%

* Goldman Sachs ( GS ) drops after earnings

* Sandisk ( SNDK ) rises on Nasdaq-100 inclusion

(Updates before market open)

By Niket Nishant and Avinash P

April 13 (Reuters) - Wall Street's main indexes were set

to open lower on Monday after weekend talks between the U.S. and

Iran failed to deliver a deal to end the war, threatening a

nascent recovery in equities and risking a renewed bout of

volatility.

The declines indicate that any relief from the ceasefire

reached last week could be fleeting, underscoring the risks of

leaning too heavily into bullish bets when the geopolitical

environment remains uncertain.

The main U.S. stock indexes had logged their second

consecutive week of gains on Friday on hopes that the peace

talks in Pakistan would bear fruit.

On Monday, however, Dow E-minis fell 509 points, or

1.06%, as of 08:32 a.m. ET, S&P 500 E-minis dropped

43.25 points, or 0.63%, and Nasdaq 100 E-minis slipped

157.5 points, or 0.62%.

Adding to the unease, the U.S. military is hours away from

beginning a blockade of all maritime traffic entering or leaving

Iranian ports and coastal areas, in a move aimed at ramping up

pressure on Tehran.

The CBOE Market Volatility Index, the market's fear

gauge, climbed to 21.29 points.

The shift in sentiment was also visible across other asset

classes, with investors gravitating toward the safe-haven U.S.

dollar while trimming exposure to equities across geographies.

Oil prices jumped back above $100 a barrel, aggravating

inflation worries after data last week showed that a record

surge in the cost of gasoline and diesel prompted the biggest

increase in U.S. consumer prices in nearly four years in March.

"We are back in the realm of a wide range of plausible

outcomes, from another round of negotiations during a patchy

ceasefire... to a full resumption of hostilities," said Hasnain

Malik, Tellimer's geopolitical risk and EM equity strategist.

GOLDMAN DROPS AFTER EARNINGS

Hopes for relief on the earnings front were dashed after

Goldman Sachs ( GS ) shares fell 4.5% in premarket trading,

after the bank's quarterly results.

While the investment bank beat estimates for earnings per

share, it did so by the slimmest margin in nearly two years.

"We don't see the market really paying too much attention to

the earnings beat. And it's all because of prospects of higher

inflation, weaker economic activity and a Fed that may be forced

to stay on hold for a long, long time," said Peter Cardillo,

chief market economist at Spartan Capital Securities.

Attention now turns to commentary from Goldman executives,

which will be parsed for clues on how the Middle East conflict,

now in its seventh week, is impacting the economy and capital

markets.

Rivals Morgan Stanley ( MS ), JPMorgan Chase ( JPM ) and

Citigroup ( C ) slipped 2%, 1.9% and 1.8%, respectively.

Industrial supplies distributor Fastenal's ( FAST ) shares

also fell 3% after earnings.

Travel-related stocks dropped, with carriers such as Delta

Air Lines ( DAL ) and JetBlue Airways ( JBLU ) down 2.7% and

2.3%, respectively, on concerns that higher oil prices might

push up fuel costs.

Energy stocks gained, with Chevron ( CVX ), Exxon Mobil ( XOM )

and ConocoPhillips ( COP ) climbing 1.9%, 2% and 2.3%,

respectively.

Sandisk ( SNDK ) added 1.5% premarket as the memory

chipmaker was on track to join the Nasdaq-100 index on

April 20.

Later in the day, data is due on existing home sales in the

U.S., and Federal Reserve Governor Stephen Miran is scheduled to

speak.