GLOBAL MARKETS-Stocks fall, oil gains on growing doubts over Iran peace talks

* 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.

(Reporting by Stephen Culp; Additional reporting by Amanda Cooper in London and Gregor Stuart Hunter in Tokyo; Editing by Rod Nickel and Nick Zieminski)