(Recasts; updates prices by Asian market close)

March 17 (Reuters) - Copper flipped into the red on

Tuesday as Iran launchedfresh attacks on U.S. allies in the Gulf

region in the third week of the war, pushing up oil prices and

fanning fears over growth and inflation.

The most-active copper contract on the Shanghai

Futures Exchange declined 0.27% to close at 99,340 yuan

($14,422.60) a metric ton, failing to hold above the 100,000

yuan level after rising 0.93% earlier this session.

The benchmark three-month copper, meanwhile, dropped

0.77% to $12,757 a tonas of 0806 GMT, after pulling up 0.72%.

The U.S. and Israeli war against Iran saw no sign of an end,

as the Strait of Hormuz remained effectively shut and U.S.

allies pushed back President Donald Trump's call to send

warships to escort tankers through the Strait.

Oil remained strong, with Brent futures holding

above $100 a barrel, stoking inflation and growth fears.

Global central banks are in focus. The Australian central

bank on Tuesday raised rates for a second straight month to a

10-month high, warning about inflation risks from the Middle

East war.

The Bank of Japan is set to keep the interest rate steady

while the surging oil prices added to the country's mounting

inflationary pressure.

In the U.S., the Federal Reserve is expected to keep rates

steady on Wednesday, while investors price in fewer rate cuts

for 2026.

The U.S. dollar strengthened after weakening on

Monday, turning greenback-denominated commodities more expensive

for traders using other currencies.

Aluminium also gave up earlier gains. The Shanghai aluminium

dropped 0.40% to close at 24,990 yuan a ton, after

rising as much as 0.64%. The London benchmark dipped

0.04% to $3,394 a ton, after a 0.90% rise.

Aluminium's earlier gains came as Guinea, the world's top

bauxite producer and source of about 40% of global supply, is

considering introducing export quotas for mining firms as

earlier as this month, Reuters reported on Monday.

The conflict in the Middle East has already hit output, with

Aluminium Bahrain initiating a phased shutdown of 19% of its

capacity and Qatalum operating at roughly 60%.

Elsewhere on the SHFE, zinc lost 1.31%, lead

gained 1.44%, nickel dropped 0.33%% and tin

climbed 0.63%.

Among other LME metals, zinc dropped 0.54%, lead

rose 0.73%, nickel lost 1.03% and tin

slid 3.54%.

($1 = 6.8878 Chinese yuan renminbi)