* U.S. President Donald Trump says he does not want to

extend Iran ceasefire

* Fed nominee Warsh calls for 'regime change' at Senate

Banking Committee hearing

* US retail sales data breezes past analyst expectations

(Updates to mid-afternoon trading)

By Stephen Culp

NEW YORK, April 21 (Reuters) - Wall Street stocks

followed their global counterparts lower on Tuesday and crude

prices extended their gains, as optimism over peace talks faded

and the U.S.-Iran ceasefire expiration loomed.

All three major U.S. stock indexes reversed earlier gains,

while gold dropped and the dollar advanced.

Iran said it had yet to decide whether to send a delegation

to Islamabad for eleventh-hour peace talks, after U.S. forces

seized a huge Iranian oil tanker in international waters to

enforce President Donald Trump's blockade.

"What's happening in the Middle East is the primary market

driver of the very short term, and that very short term can be

minute-to-minute," said Chuck Carlson, chief executive officer

at Horizon Investment Services in Hammond, Indiana. "I'm not

surprised by the way the market is kind of behaving with that

deadline looming near."

WARSH FACES THE SENATE

Kevin Warsh, U.S. President Donald Trump's pick to succeed

Jerome Powell as Federal Reserve chair, called for a "regime

change" at the central bank in comments before the Senate

Banking Committee, in which he called for a new approach to

controlling inflation and a communications overhaul that could

discourage his colleagues from saying too much about the

direction of monetary policy.

A report from the Commerce Department showed U.S. retail sales

were more robust than analysts expected in March, but much of

the upside surprise was driven by a 15.5% surge in gasoline

station receipts due to price spikes related to the U.S.-Israeli

war with Iran.

The Dow Jones Industrial Average fell 214.93 points,

or 0.43%, to 49,227.63, the S&P 500 fell 32.47 points, or

0.46%, to 7,076.67 and the Nasdaq Composite fell 94.73

points, or 0.39%, to 24,309.86.

EUROPEAN, GLOBAL STOCKS DIP

European shares ended lower as risk appetite soured ahead of

the ceasefire deadline.

MSCI's gauge of stocks across the globe fell

4.75 points, or 0.44%, to 1,067.24.

The pan-European STOXX 600 index fell 0.87%, while

Europe's broad FTSEurofirst 300 index fell 22.64

points, or 0.91%.

Emerging market stocks rose 12.09 points, or

0.76%, to 1,612.47. MSCI's broadest index of Asia-Pacific shares

outside Japan closed higher by 0.87%, to 825.46,

while Japan's Nikkei rose 524.28 points, or 0.89%, to

59,349.17.

The U.S. dollar edged higher on optimism over Iran war

negotiations, while the retail sales report signalled economic

strength.

The dollar index, which measures the greenback

against a basket of currencies including the yen and the euro,

rose 0.38% to 98.44, with the euro down 0.45% at $1.1734.

Against the Japanese yen, the dollar strengthened

0.4% to 159.42.

In cryptocurrencies, bitcoin fell 1.08% to

$75,490.88. Ethereum declined 1.38% to $2,306.21.

Oil prices reversed an earlier dip after Trump said that

while he hopes for a "great deal," he did not want to extend the

ceasefire.

U.S. crude rose 2.81% to settle at $92.13 per barrel,

while Brent settled at $98.48 per barrel, up 3.14% on

the day.

U.S. Treasury yields rose after retail sales data reinforced

expectations that the Fed will keep rates steady this year.

The yield on benchmark U.S. 10-year notes rose

4.5 basis points to 4.296%, from 4.25% late on Monday.

The 30-year bond yield rose 2.2 basis points to

4.903% from 4.881% late on Monday.

The 2-year note yield, which typically moves in

step with interest rate expectations for the Federal Reserve,

rose 6.7 basis points to 3.783%, from 3.716% late on Monday.

Gold prices dropped as the dollar firmed, as investors

looked to tentative U.S.-Iran talks and Warsh's Senate

confirmation hearing.

Spot gold fell 2.46% to $4,700.89 an ounce. U.S. gold

futures fell 2.15% to $4,703.40 an ounce.