July 1 (Reuters) - Aluminium extended losses to hit a

four-month low on Wednesday, as investors continued to unwind

risk premiums tied to the Gulf despite fresh uncertainty over

U.S.-Iran diplomacy.

The benchmark three-month aluminium on the London Metal

Exchange fell 0.41% to $3,073 a ton by 0320 GMT. It touched a

four-month low at $3,060 earlier this session, following logging

its biggest quarterly and monthly declines in years on Tuesday.

The most-traded aluminium contract on the Shanghai

Futures Exchange tracked movements on the London bourse, dropped

0.73% to 22,420 yuan ($3,300.94) a ton, after hitting its lowest

since December 17 at 2,2245 yuan, a six-month low.

The unwinding of risk premiums for light metals amid the

Iran war has pulled the London benchmark lower by nearly 16% in

June, though shipments through the Strait of Hormuz from a

region accounting for 9% of global aluminium output have

remained limited.

Iran, meanwhile, said on Tuesday that it would not meet directly

with senior U.S. envoys who travelled to the region, clouding

prospects for a lasting peace deal. Iranian officials also said

the two sides must sort out the terms of a ceasefire signed two

weeks ago before moving on to harder issues.

Copper also fell. The three-month LME copper lost

0.95%, while the most-traded SHFE copper contract

slipped 0.46%.

U.S. job openings edged up to a two-year high in May, suggesting

labour demand remained resilient despite softer hiring. That

kept investor focus on inflation risks and the possibility that

U.S. interest rates may stay elevated for longer, while keeping

the dollar strong.

Losses in copper were limited by signs of continued

expansion in China's manufacturing sector. The RatingDog China

General Manufacturing PMI eased to 51.7 in June from 51.8 in

May, but stayed above the 50-mark separating growth from

contraction.

The average PMI reading for the second quarter was the strongest

since the fourth quarter of 2020, supported by sustained new

order growth and improved labour market conditions.

Among other LME metals, zinc dropped 0.56%, lead

lost 0.93%, nickel dipped 0.20% and tin

slid 1.55%.

Elsewhere on SHFE, zinc gained 0.99%,m lead

declined 1.46%, nickel declined 0.56% and tin

rose 0.80%.

($1 = 6.7920 Chinese yuan renminbi)