(For a Reuters live blog on U.S., UK and European stock

markets, click or type LIVE/ in a news window)

March 31 (Reuters) - British stocks rose on Tuesday

after a report said the U.S. was looking to bring the Middle

East conflict to an end, but the main indexes were set for their

worst monthly showing since 2020 as investors worried about the

fallout from the war.

Global equities bounced after the Wall Street Journal

reported U.S. President Donald Trump told aides he would be

willing to halt the military campaign against Iran even if the

Strait of Hormuz stayed largely closed.

The blue-chip index FTSE 100 rose 0.6% by 1057 GMT

but was set to snap an eight-month winning streak, while the

mid-cap FTSE 250 climbed 1.1%, looking to end a

three-month run of gains.

* Most sub-indexes were in the green, except energy

, which fell 0.3% after oil prices turned volatile

as investors weighed the possibility that the five-week-long war

could end.

* Precious metals miners rose 2.2% and

provided the biggest boost to the index as gold prices climbed,

with investors flocking to the safe haven amid inflation fears

and expectations of a hawkish monetary policy response.

* British shop price inflation ticked up to 1.2% in March,

with the BRC warning that Middle East conflict-related cost

pressures were starting to feed into supply chains and could

push prices higher.

* The Bank of England is closely monitoring food prices, as

public inflation expectations rose to their highest level since

2023 in March, reinforcing caution over the policy outlook.

* Data from mortgage lender Nationwide showed that British

house prices rose by more than expected in March, but the

housing market is likely to slow as an increase in borrowing

costs, triggered by the Iran war, impacts affordability.

* Raspberry Pi soared 26.8% after the single-board

computer maker posted better-than-expected rise in annual

adjusted core earnings.

* Unilever ( UL ) rose 0.2% after the consumer goods firm

said it was in advanced talks to combine its food business with

spice maker McCormick ( MKC ) in a potential deal that would

deliver $15.7 billion in cash and give shareholders majority

control of the merged entity.