The Bank of Japan's tankan survey indicates business sentiment will deteriorate in the coming three months, but it could actually turn more optimistic because the latest survey is unlikely to fully reflect the impact of the peace talk between the U.S. and Iran, says Daiwa Securities economist Yutaro Suzuki. About 70% of the respondents turned in their answers before the deal was announced, according to a BOJ official. "Given that the progress in Middle East conditions has not been entirely priced in, business sentiment across a wide range of industries will likely improve in the September tankan survey," Suzuki says.(megumi.fujikawa@wsj.com)