May 6 (Reuters) - Copper prices rose on Wednesday as U.S. President Donald Trump signalled a potential peace agreement to end the war with Iran, easing concerns about the economic fallout, with most industrial metals also supported by top user China's return from holidays.

Benchmark three-month copper CMCU3 on the London Metal Exchange rose 1.1% to $13,284 per metric ton by 0400 GMT, having earlier in the day hit its highest since April 27.

The most-traded copper contract on the Shanghai Futures Exchange SCFcv1 was up 1.7% at 102,750 yuan ($15,043.15) per ton. Chinese markets resumed trading on Wednesday following the May Day holiday.

Stocks leapt, oil prices sank and the dollar dropped after U.S. President Donald Trump said on Tuesday he would briefly pause an operation to help escort ships through the Strait of Hormuz, citing "great progress" towards a comprehensive agreement with Iran. MKTS/GLOB

"What we're seeing at the moment is the hope that the conflict in the Middle East will continue to de-escalate and not disrupt the global economy too significantly," said Kyle Rodda, a senior market analyst at Capital.com.

"If you combine that with the fact that there is still this growing optimism about the AI buildout and other more structural and fundamental drivers of demand for copper, the risk is currently skewed to the upside."

LME aluminium prices CMAL3 slipped 0.1% to $3,586 a ton on hopes of easing supply disruptions from the Gulf, which accounts for about 9% of global production of the metal.

"Even when the strait opens, aluminium exports from the region and alumina and bauxite imports into the region are likely to face shipping delays given the backlog," Standard Chartered said in note on Tuesday.

Analysts at the bank do not expect the region's aluminium output to recover to 2025's 6.8 million-ton level until 2028 and expect prices to average $3,490 per ton in 2026.

Meanwhile, Indonesia's aluminium exports in March more than doubled from the previous month to hit their highest since November 2023 and included a rare cargo to the United States, data showed.

Among other LME metals, nickel CMNI3 rose 1.6%, lead CMPB3 was up 0.4%, tin CMSN3 climbed 4.5% and zinc CMZN3 gained 1.2%.

On the SHFE, aluminium SAFcv1 gained 1.2%, nickel SNIcv1 rose 3.9%, lead SPBcv1 gained 1.7%, zinc SZNcv1 was up 2.2%, while tin SSNcv1 climbed 6.6%.

DATA/EVENTS (GMT)
0750	France HCOB Services, Composite PMI Apr
0755	Germany HCOB Services, Composite Final PMI Apr
0800	EU HCOB Services Final, Composite Final PMI Apr
0830	UK S&P Global PMI: Composite - Output Apr
0830	UK Reserve Assets Total Apr