SINGAPORE, July 17 (Reuters) - Copper and most of the wider

base metal complex fell on Friday, as deteriorating risk

sentiment from the Middle East war spurred inflation concerns

and cast a shadow over the demand outlook.

Benchmark three-month copper on the London Metal

Exchange lost 0.88% to $13,479.5 a metric ton by 0300 GMT. The

most-traded copper contract on the Shanghai Futures Exchange

fell 0.63% to 103,650 yuan ($15,299.12) a ton.

Copper, nicknamed "Dr Copper" due to its use as a bellwether

of global economic health, fluctuated through the week and is

now on track to end the week marginally higher by 0.2%.

The breakdown of peace talks and the escalation of fighting

between the U.S. and Iran have disrupted shipments through the

Strait of Hormuz. Oil prices rose on Friday, with Brent crude

climbing nearly 12% this week.

Despite edging up on Friday, non-yielding gold was set for

its biggest weekly loss in six weeks on bets rising inflation

could keep rates higher for longer.

Higher interest rates weigh on growth-dependent industrial

minerals by dampening economic activity.

However, a string of economic data for June published this

week slightly offset some concerns about higher-for-longer U.S.

interest rates, softening sentiment somewhat.

Demand for copper was also supported by recent withdrawals

from LME warehouses, and good buying interest in the world's top

consumer China. The Yangshan premium , which tracks

buying interest there, stayed at its highest since May 2025 on

Thursday, at $95 a ton.

LME nickel lost 1.88% while the SHFE price

fell 1.18%.

Nickel's loss wiped out much of the previous day's rally,

when prices increased on concerns related to raw material

supply.

Among other LME metals, aluminium lost 0.5%, zinc

lost 1.09%, lead dipped 0.05% and tin

dropped 1.7%.

Elsewhere on the SHFE, aluminium added 0.15%, zinc

lost 0.41%, lead rose 1.8% and tin

lost 1.39%.

($1 = 6.7749 Chinese yuan renminbi)