Aug 4 (Reuters) - Copper prices rose on Tuesday, supported

by falling inventories, while oil steadied with conflicting U.S.

and Iranian statements clouding the prospect of a diplomatic

resolution to the months-long war.

The benchmark three-month copper on the London Metal

Exchange was up 0.60% at $13,953 a metric ton by 0331 GMT, while

the most-traded copper contract on the Shanghai Futures Exchange

gained 0.91% to 106,700 yuan ($15,792.90) a ton.

Copper stocks in LME-registered warehouses fell to 244,025 tons as of Friday, down from around 400,000 tons

in April. Inventories tracked by the SHFE have

dropped to about 69,300 tons from more than 430,000 tons in

March.

The declines have tightened immediately available supply

outside the United States. By contrast, COMEX copper inventories

climbed to 717,314 short tons on August 3, continuing a steady

rise from around 340,000 short tons late last year.

Weekly copper imports to the U.S. remained at a high level,

Chinese broker Jinrui Futures said in a note.

The broker also said downstream consumption in China is

drifting weaker due to higher prices.

Oil prices steadied after plunging in the previous session,

as concerns over Middle Eastern supply persisted despite U.S.

President Donald Trump saying talks with Iran were under way.

Brent crude futures rose more than 1% on Tuesday.

But that's after dropping 7% on Monday to a three-week low.

Trump said on Monday that negotiations were taking place and

described them as Iran's "last chance" to reach an agreement.

However, Iran's foreign ministry denied that talks were being

held or that any meetings were scheduled.

Shipping through the Strait of Hormuz remains disrupted,

leaving copper vulnerable to risks to energy supplies and

transport costs.

Elsewhere, nickel rebounded after leading losses on Monday.

The benchmark nickel on the LME rose 1.61%, while the

most-active nickel contract on the Shanghai exchange

climbed 1.55%.

Traders said the market is waiting for the Indonesian

government to give a clearer guidance in the issuance of new

nickel mining quotas.

Among other LME metals, aluminium rose 0.68%, zinc

added 0.37%, lead gained 0.83% and tin

was up 0.62%.

Elsewhere on SHFE, aluminium rose 1%, zinc

dropped 0.58%, lead added 0.23%, and tin

gained 0.81%.

($1 = 6.7562 Chinese yuan renminbi)

(Reporting by Dylan Duan and Lewis Jackson; Editing by Mrigank

Dhaniwala)