EUROPE GAS-Prices rise on lower wind, U.S.-Iran tensions

LONDON, Feb 4 (Reuters) - Benchmark British and Dutch wholesale gas prices rose as concerns heightened again about the escalation of tensions between the United States and Iran, as well as declining wind output.

The benchmark Dutch contract for March at the TTF hub TRNLTTFMc1 rose by 2.00 euros to 33.30 euros per megawatt hour, or $11.54/mmBtu, by 0914 GMT, LSEG data showed.

The Dutch April price TRNLTTFMc2 was up 0.80 euro at 31.05 euros/MWh.

The British day-ahead contract TRGBNBPD1 was up 2.62 pence at 83.05 p/therm.

Prices had been falling so far this week after U.S. President Donald Trump said Iran was "seriously talking" with Washington at the weekend which calmed fears of conflict.

That has changed after an Iranian drone was shot down by U.S. military and Iran approached a U.S. tanker, a gas trader said.

"The market seems sensitive to any sense of change of direction in the trajectory of travel of U.S.-Iran relations," the trader added.

The U.S. military on Tuesday shot down an Iranian drone that "aggressively" approached the Abraham Lincoln aircraft carrier in the Arabian Sea, the U.S. military said, in an incident first reported by Reuters.

Separately, in the Strait of Hormuz between the Persian Gulf and the Gulf of Oman, a group of Iranian gunboats approached a U.S.-flagged tanker north of Oman, maritime sources and a security consultancy said.

Nuclear talks between the United States and Iran are expected to take place in Oman on Friday, a regional diplomat said. Trump has warned that "bad things" would probably happen if a deal could not be reached.

In north-west Europe, average temperatures are expected to rise over the coming days but forecasts show colder weather could be back towards the end of next week, LSEG data showed.

Wind power generation is also declining. Lower wind output typically increases demand for gas from power plants.

U.S. natural gas futures had also rose on Tuesday due to a small decline in output, increased gas flows to LNG export plants and higher forecast demand.

In the European carbon market, the benchmark contract CFI2Zc1 was down 0.60 euro at 82.51 euros a metric ton.