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The main UK stock indexes eased on Thursday after recording their strongest session in months a day earlier, as oil prices rebounded on growing doubts over a fragile ceasefire in the Middle East conflict.
The blue-chip FTSE 100 dipped 0.3% by 0927 GMT, while the midcap FTSE 250 slipped 1.1%.
The FTSE 350 energy index climbed 1% as oil prices jumped almost 3% on concerns that energy flows through the crucial Strait of Hormuz will remain restricted.
Viability of the ceasefire is in question amid continued Israeli strikes on Lebanon, causing Iran to suggest it would be "unreasonable" to proceed with talks to forge a permanent peace deal.
The FTSE 100 recorded its biggest percentage gain in a year on Wednesday after the two-week ceasefire deal between the U.S. and Iran.
Rate-sensitive homebuilders came under pressure as bond yields edged higher. Two-year gilt yield , which reflects near-term rate expectations, rose to 4.25% after its largest one-day fall since March 2023.
Traders were betting on 40 basis points of rate hikes from the Bank of England by the end of this year, compared to 32 bps on Wednesday.
Britain's housing market cooled noticeably last month as economic uncertainty stemming from the Iran war unnerved buyers who face rising mortgage rates, a survey from the Royal Institution of Chartered Surveyors showed.
Ceres Power Holdings fell 7.7% after brokerage Peel Hunt downgraded the clean energy technology developer's stock to "sell" from "hold."
ME Group International climbed 3.7% after the vending machine operator secured a partnership with retailer ASDA to install Wash.ME laundry machines.
(Reporting by Sruthi Shankar in Bengaluru; Editing by Sahal Muhammed)





















