PRECIOUS-Gold falls to over 1-week low as Middle East conflict fuels inflation worries

* Iran shows off its control over strait, Israel warns of further attacks

* Brent trading above $100 a barrel on Thursday

* Jobless claims beat forecast, hint at labour market easingGold hits more than one week low (Updates with latest prices and details)

By Ishaan Arora

April 23 (Reuters) - Gold prices fell to a more than one-week low on Thursday, pressured by worries that inflationary fallout from the Middle East conflict could keep interest rates higher for longer.

Spot gold was down 0.9% at $4,697.06 per ounce, as of 03:05 p.m. EDT (1905 GMT), after hitting its lowest level since April 13. Bullion fell more than 1% earlier in the day to as low as $4,663.69 per ounce.

U.S. gold futures for June delivery settled 0.6% lower to $4,724.

"The U.S. and Iran playing a macabre version of Battleship is renewing concerns that the ceasefire could be broken anytime, leading to a strong move higher in crude that's dragging other assets lower, including gold," independent metals trader Tai Wong said.

"Gold near $4,900 last Friday seems a distant memory as the metals rally has faded."

Iran flaunted its tightened grip over the Strait of Hormuz on Thursday with video of its commandos storming a huge cargo ship, after the collapse of peace talks that Washington had hoped would open the world's most important shipping corridor.

The Iran war has boosted oil prices, with Brent trading above $100 a barrel on Thursday.

Soaring energy prices tend to boost inflation, leading to higher chances of an increase in interest rates. Even though gold is seen as an inflation hedge, higher interest rates dampen the non-yielding asset's appeal.

A Reuters poll of economists showed the U.S. Federal Reserve will likely wait at least six months before cutting interest rates this year.

Further weighing on gold, the dollar inched higher, making greenback-priced bullion more expensive for holders of other currencies, while benchmark 10-year U.S. Treasury yields rose to an over one-week high, raising the opportunity cost of holding non-yielding bullion.

Meanwhile, more Americans filed claims for unemployment benefits last week than anticipated.

Spot silver fell 2.7% to $75.55 per ounce, while platinum lost 3.2% to $2,008.22, both having hit more than one-week lows earlier. Palladium was down 5% at $1,465.23. (Reporting by Ishaan Arora and Anushree Mukherjee in Bengaluru; Editing by Joe Bavier, Nia Williams and Vijay Kishore)