(Adds analyst comment, updates prices)

By Solomon Cefai

SINGAPORE, Aug 11 (Reuters) - Aluminium prices rose for a

seventh session to touch their highest level in seven weeks on

Tuesday, as fears of tight inventory and a continued supply

deficit boosted the light metal.

Benchmark three-month aluminium on the London Metal

Exchange was up 1.01% at $3,351 a metric ton by 0700 GMT. That

marked the metal's highest price since June 23.

The most-traded aluminium contract on the Shanghai Futures

Exchange rose 0.89% to 24,250 yuan ($3,595.15) a ton,

its highest since June 15.

"Aluminium's move higher reflects continued tightness in the

physical market, with LME inventories exceptionally low and

supply from Bahrain and the UAE yet to recover fully," Rupankar

RM, head of market research and data intelligence at AL Circle

said.

The U.S.-Iran war has disrupted aluminium shipments from the

producers in the Middle East, which account for 9% of global

capacity. Hopes of a deal between the two countries faded on

Tuesday after U.S. President Donald Trump demanded Iranian

reparations.

For copper, a rising dollar dampened support from

supply concerns. A more expensive dollar makes

greenback-denominated commodities more expensive for those using

other currencies.

Copper prices on the LME edged down 0.16%, while the

price on the SHFE gained 0.31%. The cash-to-three-month

spread on the LME was in sharp backwardation at $145.5

a ton, signalling tight physical availability.

LME stocks of the red metal have fallen

sharply as traders consider a potential U.S. tariff on imports

of refined copper.

The market is closely watching macroeconomic data for signals on

inflation, and what it might mean for interest rates. "Higher

rates tend to hit industrial metals by weighing on economic

growth," ANZ senior commodity strategist Daniel Hynes said in a

note.

Among LME metals, zinc dipped 0.08%, lead

was steady, nickel was steady and tin lost

0.53%.

Among SHFE metals, zinc added 0.41%, lead

gained 1.02%, nickel lost 0.38% and tin lost

1.04%.

($1 = 6.7452 Chinese yuan renminbi)