BEIJING: Aluminium prices in London hit their highest level in nearly four ​years, as the ⁠escalating conflict in the Middle East heightened concerns about tighter global supplies, offsetting ‌downward pressure on demand from a stronger dollar.

Benchmark three-month aluminium on the London Metal Exchange hit ​its highest since March 31, 2022, at $3,544 per metric ton earlier in the session. It gained ​0.75% at $3,472 ​per ton by 0706 GMT.

The most-traded aluminium contract on the Shanghai Futures Exchange closed daytime trade up 1.61% to 24,950 yuan ($3,607.84) per ton, after ⁠touching its highest since January 30 at 25,860 yuan earlier in the session.

The U.S.-Israel war with Iran has disrupted shipping through the Strait of Hormuz, a crucial waterway for the Gulf, which accounts for about 9% of global aluminium production.

The ​light-weight metal, ‌used in construction ⁠and packaging, posted its ⁠biggest weekly gain since January 2023 last week, as supply concerns exacerbated after Qatari smelter ​Qatalum began shutting down production and Aluminium Bahrain declared force majeure ‌on shipment.

"Extended disruption in the Strait would ⁠simultaneously choke alumina inflows and aluminium exports for Middle Eastern smelters. That would tighten global supply meaningfully," Ewa Manthey, commodities strategist at ING, wrote in a note.

The Middle East escalation could push aluminium above $4,000 per ton, said Manthey.

Other base metals were broadly tamed by a firmer dollar as oil prices surged by over 25%.

A stronger dollar weighs on commodities denominated by the greenback by making them less affordable for investors using other currencies.

Among other LME metals, copper lost 0.83%, ‌nickel slipped 1.71%, lead fell 1.08% and tin tumbled 4.91% while zinc ⁠advanced 0.55%.

Better inflation data in China boosted sentiment, ​narrowing losses for other base metals.

China's consumer inflation accelerated to the highest in more than three years due to the effects of the Lunar New Year holiday.

Shanghai copper slid ​0.59%, tin ‌fell 2.4%, nickel eased 0.16% and lead shed 0.15%. Zinc strengthened 0.62%.

($1 = ⁠6.9155 Chinese yuan) (Reporting by Amy ​Lv and Lewis Jackson; Editing by Eileen Soreng and Ronojoy Mazumdar)