March 20 (Reuters) - Copper is set to post its steepest

weekly loss in months, despite a pullback on Friday, as the

Middle East war fuels fears of higher inflation and a hit to

global growth amid surging oil prices.

The benchmark three-month copper on the London Metal

Exchange gained 1.23% to $12,296 a metric ton as of 0331 GMT. It

is set to post a near 4% weekly loss, the biggest since April

last year.

The most active copper contract on the Shanghai

Futures Exchange was unchanged at 95,850 yuan ($13,903.39) a

ton, and is poised to drop 5% this week, the biggest weekly drop

since early February.

Central banks held rates this week and warned that the

war-driven jump in oil prices could rekindle inflation and weigh

on growth.

It prompted investors to push back on rate-cut bets and, in some

cases, revive expectations of renewed tightening.

Brent futures eased on Friday but were still above $105

a barre, gaining more than 47% so far since the war started on

February 28.

The conflict is fuelling concerns over the possibility of a

recession triggered by stagflation and rate hikes, leading to

copper's break below key support level, Chinese broker Galaxy

Futures said.

Aluminium also felt the pinch, giving back some of its

gains. The Gulf accounts for 8% of the world's output.

Shanghai's most-active aluminium contract declined

0.73% to 24,370 yuan a ton, and is set to end the week nearly 3%

lower.

London benchmark aluminium gained 1.29% to $3,294 a

ton, set to gain more than 4% for the week.

Aluminium Bahrain said on Thursday that it is

exporting metal via the Saudi port of Jeddah after the Strait of

Hormuz remained effectively shut.

Elsewhere on SHFE, zinc gained 0.72%, lead

dropped 1.03%, nickel gained 1.50% and tin

nudged 0.04% higher.

Among other LME metals, zinc gained 1.24%, lead

nudged 0.08% higher, nickel climbed 0.93% and

tin surged 2.42%.

Friday, March 20

DATA/EVENTS

1000 EU Total Trade Balance SA Jan

($1 = 6.8940 Chinese yuan)