METALS-Copper touches three-week high as US-Iran ceasefire eases global slowdown fears

April 8 (Reuters) - Copper prices rose to a three-week high 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 3% to $12,676 a metric ton by 0602 GMT, hitting its highest level since March 18.

The most-active copper contract SCFcv1 on the Shanghai Futures Exchange gained 1.2% to 97,870 yuan ($14,272.18) a ton, also hitting its highest level since March 18.

"The strength in base metals would come from much lower crude oil prices, which 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 0.8% to $3,502.50 a ton, while the most-traded Shanghai contract SAFcv1 gained 0.6% to 24,795 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 5.3%, zinc CMZN3 gained 1.3%, lead CMPB3 was up 0.7%, and nickel CMNI3 rose 2.1%.

Among other SHFE base metals, zinc SZNcv1 gained 1.1%, lead SPBcv1 rose 0.8%, tin SSNcv1 was up 4%, and nickel SNIcv1 rose 0.3%.