Updates prices, recasts to reflect price fall

LONDON, May 20 (Reuters) - Benchmark Dutch and British wholesale prices fell on Wednesday afternoon, tracking oil lower, after U.S. President Donald Trump said that negotiations with Iran were in the "final stages".

The benchmark Dutch front-month contract at the TTF hub TFMBMc1 was down 2.761 euros to 49.055 euros per megawatt hour (MWh) by 1546 GMT, ICE data showed.

The contract briefly touched an intraday low of 47.85 euros/MWh.

The British front-month contract NGLNMc1 was down 7.04 pence at 119.61 pence per therm.

The gas market tracked crude oil lower, with Brent crude futures LCOc1 extending losses after Trump's remarks sparked optimism that the Iran war could be closer to an end.

The Iran conflict has led to the near closure of the Strait of Hormuz, through which roughly a fifth of the world's LNG typically passes, impacting global gas and oil prices.

Oil can have an impact on gas rates as many LNG and pipeline gas contracts are index-linked to oil prices.

The gas market was also weak with warmer temperatures expected to curb demand.

Average temperatures across North-west Europe are expected to peak at 20.7 degrees Celsius on May 27 before falling lower toward the end of May but staying above seasonal averages, LSEG data showed.

Residential demand for heating is forecast to decline by 127 gigawatt hours per day to 674 GWh/d on the day-ahead, as temperatures continue to rise. Gas demand for power generation is forecast to pick up on the day-ahead by 92 GWh/d to 2,145 GWh/d amid lower wind speeds, according to LSEG data.

In the European carbon market, the benchmark contract CFI2Zc1 was up 0.84 euro at 75.81 euros a metric ton.