PARIS, April 21 (Reuters) - Euronext wheat prices rose for a second session on Tuesday, helped by a weaker euro and higher crude oil prices as investors turned more cautious about prospects for peace talks to end the Iran war.

May milling wheat BL2K6 settled 0.9% up at 195.75 euros ($229.95) a metric ton, recovering further from a two-month low of 190.50 euros on Friday.

New-crop September futures BL2U6, which now have a larger open position than May, settled up 1.1% at a one-week high of 209.00 euros, though gains were capped by a chart gap.

New-crop positions on Euronext have developed an unusually wide premium over May given concerns that rising fertilizer and energy prices, due to the Iran war, will inflate grain production costs for the next harvest.

Oil prices climbed about 3% on Tuesday after U.S. President Donald Trump said he did not want to extend a soon-to-expire ceasefire in the Iran war, adding to doubts over whether fresh negotiations to end the seven-week-old conflict will take place. O/R

The euro EUR= fell against the dollar, reinforcing the recent competitiveness of European wheat overseas, However, demand remained thin, with some buyers waiting to see if a possible end to the Middle East conflict would cool prices.

“Attention is on Iranian peace prospects, with buyers on the sidelines keeping demand low,” one German trader said. “One importer told me today he will not issue any more international tenders until there is an Iranian peace deal.”

In one of the few purchase tenders in the market, Jordan on Tuesday bought about 60,000 metric tons of hard milling wheat at $273.99 a ton cost and freight (c&f) included.

“It is a pity demand is so weak as west EU wheat is looking competitive against the Black Sea,” the trader said.

French, Russian and Ukrainian 11.5% wheat were all quoted in a similar range between $233-$235 a ton FOB for May shipment depending on Euronext and currency moves, with Romanian about $4 higher, traders said.

In other limited demand, an Egyptian buyer was seeking 30,000 tons of Russian wheat for May shipment at an undisclosed price.

Chicago wheat Wv1 was also higher, despite forecasts of rain relief in dry U.S. wheat belts. GRA/

($1 = 0.8513 euros)