May 27 (Reuters) - London copper prices rose to a near

two-week high on Wednesday, as lower oil prices eased fears of

inflation and slowing economic growth, while aluminum hovered

near its highest level in more than four years on supply

concerns.

Three-month copper on the London Metal Exchange was

up 0.5% at $13,688.50 a metric ton by 0334 GMT, after hitting

its highest since May 15 earlier in the session.

The most-traded copper contract on the Shanghai

Futures Exchange was unchanged at 105,160 yuan ($15,495) a ton.

Brent crude oil prices fell and were trading near their

lowest in more than a month this week, easing some concerns over

inflation and a global slowdown, supporting demand for copper,

which is widely considered a bellwether for the health of the

global economy.

Hopes of an AI boom that is expected to require large

amounts of copper for data centres are also supporting sentiment

for the base metal.

"The key tension playing out in the markets now is whether

this AI buildout narrative can continue to diverge from the

inflation fears triggered by the U.S.-Iran war and its dramatic

consequences," said Ilya Spivak, head of global macro at

Tastylive.

Iran said on Tuesday the U.S. had violated a ceasefire by

striking targets near the contested Strait of Hormuz,

potentially complicating efforts to bring the war to a close.

Three-month aluminium on the London Metal Exchange

rose 0.5% to $3,689 a metric ton. Prices rose to their highest

since March 24, 2022 in the previous session.

Aluminium was supported by rising prices for the feedstock

alumina and a tightened market due to reduced supply from Gulf

producers.

The September alumina futures on the Shanghai Futures

Exchange rose over 1% to their highest since April 28

earlier in the session.

Reduced aluminium supply from Gulf producers due to the

conflict has also kept the premium of the LME aluminium cash

contract against the benchmark at $73 a ton as of

Tuesday.

Elsewhere on the LME, zinc rose 0.3%, lead

was up 0.1%, nickel gained 0.5% and tin climbed

0.8%. Nickel hit its highest level since May 14, while lead

hovered near a four-month high.

Among other SHFE metals, aluminium ticked 0.8%

higher, zinc was down 0.7%, lead rose 0.3%,

nickel gained 1.9% and tin added 0.6%.

($1 = 6.7808 Chinese yuan)

(Reporting by Noel John in Bengaluru; Editing by Mrigank

Dhaniwala)