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* FTSE 100 up 1.6%, FTSE 250 up 1.9%

* Trump hints at end to U.S.-Israeli conflict with Iran

* Oil prices slump nearly 7%

* BoE rate expectations shift amid inflation concerns

March 10 (Reuters) - London's FTSE indexes rose on

Tuesday, after three sessions of declines, as U.S. President

Donald Trump suggested that the Middle East war could be close

to ending.

The blue-chip FTSE 100 gained 1.6% by 1015 GMT,

while the mid-cap FTSE 250 added 1.9%. If both indexes

hold their gains, it would mark their biggest one-day rise in

nearly a year.

Trump's comments on Monday led to a nearly 7% slump in oil

prices, even as Iran's Revolutionary Guards said they would not

allow "one litre of oil" to be shipped from the Middle East if

U.S. and Israeli attacks continue.

Most major British subsectors were in the green, except the

energy index, which fell 2.1%, with oil majors

Shell down 1.7% and BP sliding 2.9%.

Meanwhile, interest rate expectations stayed volatile, with

traders now evenly split on whether the Bank of England will cut

interest rates at least once this year after briefly pricing in

a hike on Monday, according to LSEG data.

Standard Chartered and Morgan Stanley delayed their forecast for

a rate cut to the second quarter, amid inflation risks from the

Middle East conflict that pushed the FTSE 100 4.6% below its

record high in late February.

The BoE is expected to deliver its interest rate decision on

March 19.

Meanwhile, British consumer spending grew slowly last month

as households turned more pessimistic about the economic outlook

amid inflation worries, surveys from Barclays and the BRC

showed.

In corporate news, Persimmon rose 6.3% after the home

builder said it expects to deliver more homes in 2026, with

profits likely at the top end of estimates.

Domino's Pizza rose 3% as the fast-food chain bets on

its new fried chicken brand to drive growth beyond pizza.