Copper Climbs to Three-week High as Us-iran Ceasefire Eases Global Slowdown Fears

April 8 (Reuters) - Copper prices rose to three-week highs on Wednesday after U.S. President Donald Trump agreed to a two-week ceasefire with Iran, sending oil prices sharply lower and easing fears of a global economic slowdown.

Benchmark three-month copper CMCU3 on the London Metal Exchange rose 2.6% to $12,625 a metric ton by 0129 GMT, hitting its highest level since March 18.

The most-active copper contract SCFcv1 on the Shanghai Futures Exchange gained 1.1% to 97,700 yuan ($14,247.39) a ton, also hitting its highest level since March 18.

"The strength in base metals would come from much lower crude oil prices, that will postpone the possibility of a global slowdown or recession," said Marex analyst Edward Meir.

Crude oil prices fell more than 10% as investors cheered the possible resumption of oil and gas flowing through the Strait of Hormuz. O/R

The U.S. dollar sank to its lowest level in a month, making greenback-denominated commodities more affordable for holders of other currencies. USD/

Trump's announcement came shortly before his deadline for Iran to open the Strait of Hormuz, where 20% of the world's oil transits, or face widespread attacks on its civilian infrastructure.

Tehran said talks with the United States would begin on Friday in Islamabad after it submitted a 10-point proposal to Washington via Pakistan.

London aluminium CMAL3 rose 0.6% to $3,496 a ton, while the most-traded Shanghai contract SAFcv1 gained 0.3% to 24,715 yuan a ton.

Meanwhile, the Mehr news agency reported that reports of an attack on the Arak aluminium plant in central Iran were incorrect.

Elsewhere on the LME, tin CMSN3 climbed 4.3%, zinc CMZN3 gained 1%, lead CMPB3 was up 0.6%, and nickel CMNI3 rose 1.6%.

Among other SHFE base metals, zinc SZNcv1 gained 1%, lead SPBcv1 rose 0.9%, tin SSNcv1 was up 3.3%, while nickel SNIcv1 lost 0.1%.