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* FTSE 100 down 1.3%, FTSE 250 down 1.7%

* Vistry slips on first-half loss warning

* Jet2 ( DRTGF ) rises on stronger summer travel demand outlook

July 8 (Reuters) - London's FTSE indexes fell more than 1%

on Wednesday after U.S. President Donald Trump said an initial

agreement to end the war on Iran was over, reigniting concerns

about escalating tensions in the Middle East and higher oil

prices.

The blue-chip FTSE 100 index fell 1.3% to 10,519.17

points by 1111 GMT, while the midcap FTSE 250 slipped

1.7%. The benchmark fell to its lowest level in nearly one week,

while the midcap index touched its lowest level in more than a

week.

* Most sectors were in the red; defence stocks

were the biggest drag, while the energy index

was the only sector in the green.

* BP and Shell rose 3% and 1.8%,

respectively, and were among the top performers on the FTSE 100

as the energy sector received a boost from oil prices, which

jumped more than 4% on renewed fears of disruptions to Middle

East oil supplies.

* Precious metals miners fell 3.6% as gold

prices dropped more than 1% amid renewed concerns about

inflation and the prospect of higher interest rates.

* Meanwhile, Britain's jobs market downturn eased slightly

last month, according to a survey of recruitment companies on

Wednesday that showed an upturn in temporary hiring and starting

salaries.

* Among individual stocks, Jet2 ( DRTGF ) climbed 9.9% after

the British travel firm said tourists were more willing to

commit to travel plans following the easing of Middle East

tensions.

* Vistry fell 6.4% after Britain's largest

affordable housing builder warned of a first-half pre-tax loss

of £30 million ($40 million).

* IG Group ( IGGRF ) rose 2.5% after the online trading

platform proposed setting up a new holding company in Jersey as

part of a strategic overhaul to unlock shareholder value.