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* FTSE 100 down 2.4%, FTSE 250 down 3.2%

* FTSE 100 down about 11% since Middle East conflict

began

* Miners lead declines as gold hits four-month low

* Spire Healthcare falls after buyout talks collapse

March 23 (Reuters) - The main UK indexes slumped on

Monday and were on track to confirm a correction, as investors

priced in the Bank of England hiking interest rates sharply with

the Middle East conflict driving up energy costs.

The blue-chip FTSE 100 dropped 2.4% to its lowest

level in three months at 1103 GMT. The index is now down about

11% since the war erupted earlier this month, on course to

confirm that it has been in correction since hitting a record

high in late February.

The mid-cap FTSE 250 tumbled 3.2% to its lowest

level since May 2025.

Britain's 10-year government bond yields rose to

their highest since July 2008 at 5.068% as markets priced in

four BoE interest rate rises for this year, a sharp reversal

from expectations of two rates in 2026.

British Prime Minister Keir Starmer is set to chair an

emergency meeting on the economic fallout from the war in Iran

on Monday, with finance minister Rachel Reeves and Bank of

England Governor Andrew Bailey in attendance, the government

said.

Stocks across the globe sold off after Iran warned it would

target Israeli power plants and facilities supporting U.S. bases

in the Gulf if U.S. President Donald Trump follows through on

his threat to "obliterate" Iran's power network.

All sectors traded in red, with precious metal miners

being the biggest drag, after gold sank more than

5% to a four-month low as the Middle East tensions entered its

fourth week.

Among other stocks, BT fell 6.1% after Britain said

it would regulate BT Openreach's national broadband network for

another five years with a price cap on a wider range of speeds,

to drive competition and extend fibre connections to the final

fifth of the country's premises.

Spire Healthcare fell 19.3% to its lowest since

December 2020 after buyout talks with Bridgepoint and Triton

end, and both parties said they have no intention to make an

offer for the private hospital group.