* Strait of Hormuz at standstill remains a worry for

investors

* Iran rejected last round of talks before ceasefire

extension

* Remains to be seen if Iran or Israel agree to extend

ceasefire

* Markets looking past developments, pinning hopes on

peace deal

(Updates to Asia late morning)

By Ankur Banerjee

SINGAPORE, April 22 (Reuters) - U.S. stock futures rose

and the dollar wavered on Wednesday after President Donald Trump

said he would indefinitely extend the Iran ceasefire, keeping

sentiment buoyed, although with the Strait of Hormuz still

closed, oil prices stayed near $100.

Trump's announcement appeared to be unilateral, and it was

not immediately clear whether Iran, or U.S. ally Israel, would

agree to extend the ceasefire, which began two weeks ago.

Markets took the latest development in stride as investors

weighed the extension with no signs of resumption in talks yet.

Iran had rejected a second round of negotiations before Trump's

announcement.

S&P futures rose 0.6% while Nasdaq futures

gained 0.7% in Asian hours. European futures eased 0.2%

pointing to a subdued open.

MSCI's broadest index of Asia-Pacific shares outside Japan

fell 0.5% after hitting a seven-week top on

Tuesday. Japan's Nikkei surged to a record high.

Thomas Mathews, head of markets for Asia-Pacific at Capital

Economics, said the earlier ceasefire was widely seen as

indefinite so it was not surprising the latest announcement had

not moved markets much.

"Obviously, any news on the re-opening of the Strait is a

good candidate for the next big market flashpoint," Mathews

added.

HORMUZ REMAINS KEY

After a sharp selloff in March due to war in the Middle

East, markets across the globe have swiftly rebounded this month

and are back at pre-war levels as the prospect of a peace deal

and the ceasefire spurred a risk-on rally.

That has also left the U.S. dollar, which benefited from

safe haven demand in March, on the back foot, giving up most of

its war-induced gains.

"It appears markets were right to assume peak war

uncertainty is behind us," said Matt Simpson, a senior market

analyst at StoneX. "Risk seems likely to remain buoyant and dips

viewed favourably by equity bulls. The closure of the Strait of

Hormuz is already priced in."

Trump said he would continue the U.S. Navy's blockade of

Iran's ports and shores. Tehran has effectively closed the

Strait of Hormuz through which one-fifth of the world's energy

supply usually flows, causing a global energy shock.

Oil prices swung between gains and losses in early trading,

with Brent crude futures down 0.17% at $98.27 per

barrel. U.S. West Texas Intermediate crude futures

slipped 0.42% to $89.29 a barrel.

While oil prices have come down from their March peaks they

are still well above pre-war levels, worrying investors that

elevated energy prices could quicken inflation and keep global

rates higher for longer.

"We expect markets to remain volatile for now given the

uncertainty with Hormuz and because the duration and scale of

the crisis remain unclear," said Vasu Menon, managing director

of investment strategy at OCBC.

WARSH SENATE APPEARANCE

Investors parsed comments from Federal Reserve chief nominee

Kevin Warsh as he tried to assure U.S. senators considering his

confirmation to lead the central bank that he ​would act

independently of the White House.

Warsh said he had made no promises to Trump about cutting

rates and 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.

Separately, data on Tuesday showed U.S. retail sales rose

more than expected in March as the war with Iran boosted

gasoline prices and led to a record surge in receipts at service

stations, while tax refunds underpinned spending elsewhere.

The currency market was fairly muted in Asian hours. The

euro last fetched $1.1744. The yen was at

159.27 per dollar and sterling firmed to $1.351.

The dollar index, which measures the U.S. currency

against six peers, was last at 98.35, hovering near its highest

in a week. Still, the index is down 1.5% in April after rising

about 2.3% in March.