UK benchmarks set for weekly loss as Mideast war hits rate-cut hopes

Group 1 - London's main stock indexes, FTSE 100 and FTSE 250, extended declines, down 0.3% and 0.7% respectively, as the Middle East conflict heightened inflation fears impacting the Bank of England's monetary policy outlook [1][1] - The UK energy index rose by 1.3% as oil prices exceeded $100 per barrel, with BP and Shell gaining 1.5% and 1.3% respectively [1][1] - The mining sector was the worst performer, down 2.1%, amid concerns over the economic impact of the ongoing conflict [1][1] Group 2 - ONS data indicated that the UK's economy stalled in January, with flat GDP and rising energy price risks due to the Iran conflict [1][1] - Money markets have removed expectations for a March rate cut from the Bank of England, with Bank of America pushing its forecast for the first rate cut to June [1][1] - HSBC and Standard Chartered both fell by 1% as their operations in the Gulf region were disrupted by the Iran conflict [1][1]