METALS-Copper at three-month low on oil surge, strong dollar

March 19 (Reuters) - Copper slid to its lowest point in three months on Thursday in a cross-complex selloff of base metals, as oil prices spiked following Iranian attacks in the Middle East, stoking inflation fears and stronger dollar amid weakening rate-cut expectation.

The most-active copper contract SCFcv1 on the Shanghai Futures Exchange lost 4.50% to close at 94,430 yuan ($13,686.30) a metric ton, after declining as much as 5.09% to 93,850 yuan, the lowest since December 19 and the biggest percentage loss since February 2.

And the benchmark three-month copper CMUC3 on the London Metal Exchange slid 1.84% to $12,168 a ton, after dropping as much as 2.92% to $12,034, the lowest since December 24.

"Copper came under more pronounced pressure, moving in strong negative correlation with oil and the dollar," analysts at Sucden Financial said, noting the broader base metal complex is vulnerable as inflation fears due to rising energy prices and dollar strength persists.

Brent futures LCOc1 surged above $110 a barrel, following Iran's attack on several oil plants across Saudi Arabia, the United Arab Emirates and Qatar in retaliation for strikes on its own energy infrastructure in South Pars and Asaluyeh.

Rising oil prices fuel inflation concerns, bolstering expectations of tighter monetary policy and weighing on growth-linked metals such as copper.

Fed Chair Jerome Powell on Wednesday addressed rising energy prices, saying it would "push up overall inflation" but noted that "the scope and duration of the potential effects on the economy" was too soon to know in his speech after the U.S. central bank's widely-expected decision to keep interest rate unchanged.

The U.S. dollar =USD strengthened on Wednesday, Pressuring commodities denominated by the greenback by making them less affordable for investors using other currencies.

Copper also came under pressure from mounting stock levels. Copper stocks in LME warehouses MCUSTX-TOTAL continued to rise after hitting the highest since 2019, totalling 334,100 tons as of Tuesday.

Elsewhere on SHFE, aluminium SAFcv1 declined 2.64%, zinc SZNcv1 lost 3.16%, lead SPBcv1 dropped 1.59%, nickel SNIcv1 tumbled 2.94% and tin SSNcv1 slid 6.61%.

Among other LME metals, aluminium CMAL3 dropped 1.43%, zinc CMZN3 lost 1.13%, lead CMPB3 slid 0.94%, nickel CMNI3 tumbled 2.78% and tin CMSN3 plunged 3.69%.

($1 = 6.8996 Chinese yuan)