BEIJING, Oct 23 (Reuters) - Copper prices fell on Monday on investors jitters' about developments in the Middle East as well as rising inventory of the metal.

Three-month copper on the London Metal Exchange (LME) was down 0.7% to $7,894 per metric ton by 0638 GMT, the most-traded December copper contract on the Shanghai Futures Exchange lost 1% to 65,680 yuan ($8,975.99) per ton.

Fears that the Israel-Hamas war could mushroom into a wider Middle East conflict rose on Sunday with Washington warning of a significant risk to U.S. interests in the region as ally Israel pounded Gaza and clashes on its border with Lebanon intensified.

Stocks on the LME have been increasing since mid-July and they ended last week at a two-year peak.

Copper stocks on the SHFE rose for a second consecutive week on Friday.

Rising supplies also followed profitable import conditions for Chinese importers, as reflected by a rise in the Yangshan copper premium.

Although the third-quarter GDP data came in better than expected, China's economy is still going through a weak recovery and the rising supplies are likely to weigh on copper prices, analysts at GF Futures said in a note.

A copper tube producer said their October production fell slightly than that in September because of fewer orders from end-users such as air conditioning makers.

LME aluminium dipped 0.6% to $2,169.50 a ton, tin was little changed at $25,000, zinc slid 1% to $2,413, lead moved down 0.8% to $2,083, and nickel was on hold at $18,580.

SHFE aluminium fell 0.8% to 18,835 yuan a ton, zinc slid 0.8% to 20,810 yuan, lead dipped 0.1% at 16,480 yuan, nickel nudged 0.2% down to 148,890 yuan, and tin slipped 1% to 214,560 yuan.

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($1 = 7.3173 Chinese yuan renminbi) (Reporting by Siyi Liu and Dominique Patton; Editing by Subhranshu Sahu and Janane Venkatraman)