April 9 (Reuters) - London copper prices fell on

Thursday, retreating from a three-week high, as renewed Middle

East tensions cast doubt on whether the U.S.-Iran ceasefire

would hold, lifting oil prices and reviving concerns over the

global growth outlook.

Benchmark three-month copper on the London Metal

Exchange was down 0.6% at $12,630 a metric ton by 0303 GMT,

after hitting its highest level since March 18 on Wednesday.

In contrast, the most-active copper contract on the

Shanghai Futures Exchange gained 0.5% to 97,740 yuan

($14,297.31) a ton, its highest since March 18.

Israel struck Lebanon on Wednesday, killing hundreds of

people and drawing a threat of retaliation from Iran, which

suggested it would be "unreasonable" to proceed with talks to

forge a permanent peace deal with the U.S.

Oil prices rose over 2% to $97 a barrel on Thursday on

concerns that supply from the key Middle East producing region

may not fully resume and as the crucial Strait of Hormuz would

remain restricted.

"We are seeing some natural profit-taking after yesterday's

strong rally. This, combined with oil heading higher today is

applying downward pressure on metal prices," said Tim Waterer,

chief market analyst, KCM Trade.

Higher energy prices have dampened the outlook for metals by

raising concerns that an energy shock could squeeze global

growth and manufacturing.

"Recent geopolitical escalations and the impact of higher

energy costs make for a more challenging backdrop (for copper).

Further, near-term market signals reflect softness, with a wide

nearby contango and the sustained build in LME inventories,"

Standard Chartered said on Wednesday.

London aluminium fell 0.1% to $3,451.50 a ton, and

the most-traded Shanghai contract lost 0.5% to 24,555

yuan a ton.

Elsewhere on the LME, tin fell 1.4%, zinc

gained 0.1%, lead was unchaged and nickel lost

0.4%.

Among other SHFE base metals, zinc fell 0.3%, lead

was down 0.2%, tin lost 0.7%, while nickel

gained 0.5%.

DATA/EVENTS (GMT)

0600 Germany Industrial Output MM Feb

0600 Germany Industrial production YY SA Feb

0900 Germany Overall Comprehensive Risk Q2

0900 France Overall Comprehensive Risk Q2

0900 UK Overall Comprehensive Risk Q2

1230 US Consumption, Adjusted MM Feb

1230 US Core PCE Price Index MM, YY Feb

1230 US PCE Price Indec MM, YY Feb

1230 US GDP Final Q4

1230 US Initial Jobless Clm April 4, w/e