The US and Iran’s failure to strike a peace deal over the weekend is set to weigh on market sentiment and lift demand for safe haven assets on Monday, according to analysts.

The two sides couldn’t reach an agreement during talks in Pakistan, which is likely to disappoint investors who had added exposure to risk assets last week after the countries announced a ceasefire. Vice President JD Vance said negotiators will return to the US without a deal after Iran didn’t give a commitment it wouldn’t seek a nuclear weapon.