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April 23 (Reuters) - Britain's FTSE 100 fell on

Thursday, as higher oil prices and fading prospects of renewed

U.S.-Iran peace negotiations weighed on the broader market,

while investors parsed through a raft of corporate earnings.

The blue-chip FTSE 100 index dropped 0.8% to

10,388.84 points by 10:40 a.m. GMT, while the midcap FTSE 250

fell 1.1%.

* Brent crude futures surged past $100 a barrel, as

Iran tightened its grip on the Strait of Hormuz and said it will

not reopen the waterway until the U.S. lifts its naval blockade.

* The rise in oil prices pressured travel & leisure

stocks, with Wizz Air ( WZZAF ) and Carnival

down 3% and 2.4%, respectively.

* Travel retailer WH Smith ( WHTPF ) plunged 10.6% after

it cut its annual profit forecast and suspended dividend.

* Meanwhile, heavyweight banks Barclays ( BCS ) and HSBC ( HSBC )

fell 2.1% and 0.9%, respectively.

* Among miners, Fresnillo declined 6.9%, and Rio

Tinto fell 2.1%, tracking precious and base metals.

* The share of British firms reporting higher costs jumped

to a record this month, signalling high input costs and rising

inflation as fallout from the Iran war weighs on the economy, a

survey showed.

* Traders are now pricing in 70% probability of the Bank of

England hiking rates in June, up from 40% last week, according

to LSEG data.

* The FTSE 100 is down 2.7% for the week so far and is on

track to erase nearly all gains sparked by hopes of the

U.S.-Iran ceasefire,which was announced earlier this month.

* Among other stocks, supermarket group Sainsbury

fell 5.2% after it warned that the Iran war could cloud

its outlook, mirroring concerns raised by peer Tesco ( TSCDF )

earlier in the week. Tesco ( TSCDF ) shares fell 3% on Thursday.

* The London Stock Exchange Group ( LDNXF ) gained 1.9% after

forecasting annual revenue growth at the upper end of its range.

* Software firm Relx ( RELX ) was down 1.3% after the

company reaffirmed its full-year outlook.