PRECIOUS-Gold falls as renewed US-Iran tensions dampen rate cut hopes

* U.S. to blockade strait of Hormuz

* Gold drops to lowest since April 7

* Oil prices jump back above $100 a barrel

* Dollar climbs to near one-week high (Updates for EMEA morning session)

By Pablo Sinha

April 13 (Reuters) - Gold prices declined on Monday as renewed fears of a wider Middle East conflict spurred by failed U.S.-Iran talks boosted oil prices, fueled inflation concerns and reduced expectations of U.S. Federal Reserve rate cuts this year.

Spot gold fell 0.6% at $4,719.54 per ounce, as of 0918 GMT, after hitting its lowest since April 7 earlier in the day. U.S. gold futures for June delivery dropped 1% to $4,741.70.

The U.S. military said it will begin a blockade of all maritime traffic entering and exiting Iranian ports and coastal areas on Monday, following failed weekend talks to end the war with Iran.

Iran's Revolutionary Guards responded, warning that military vessels approaching the Strait of Hormuz would be considered a breach of the two-week ceasefire and dealt with harshly and decisively.

"With no US-Iran breakthrough over the weekend, the risk of a wider war is once again being priced in, threatening higher energy costs and a more aggressive Fed," said Zain Vawda, analyst at MarketPulse by OANDA.

Oil prices rose above $100 a barrel as markets asssesed the U.S. blockade on the strait.

The dollar rose to a near one-week high, making greenback-priced bullion more expensive for holders of other currencies.

Spot gold has fallen more than 10% since the U.S.-Israeli war on Iran began on February 28. While gold is typically viewed as a hedge against inflation and geopolitical risks, elevated interest rates weigh on the non-yielding metal.

Markets now assign a 16% chance of a U.S. rate cut of at least 25 basis points at the Fed's December meeting, according to CME's FedWatch Tool, down from 21% a day earlier.

"If gold remains between (current) price levels, it could consolidate until a definitive resolution on Iran and the Strait of Hormuz is reached. A break of the $4,500/oz level could facilitate a move toward the $4,100/oz handle," Vawda added.

Among other metals, spot silver fell 2% to $74.36 per ounce, platinum lost 0.6% to $2,033.50, while palladium gained 0.4% to $1,527.20. (Reporting by Pablo Sinha in Bengaluru; Editing by Tasim Zahid)