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

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

May 11 (Reuters) - UK shares were subdued on Monday as

fears of a stalemate in the Middle East conflict troubled

investors, who were also assessing British Prime Minister Keir

Starmer's vow to stay on at the helm.

The blue-chip FTSE 100 index rose 0.04% as of 11:24

am GMT, while the midcap FTSE 250 slipped 0.27%.

* Starmer sought to quell a mounting rebellion in ​his party

and said he ‌would not walk away to avoid plunging Britain into

a new political crisis.

* Labour lawmakers had ​turned on him after his party

suffered the worst local election results for a governing party

in more than three decades.

* "It is worth noting that fiscal pressures are high, no

matter who the Labour leader is," BofA Securities strategists

wrote, adding that the government could face pressure to support

households through the oil price shocks.

* Brent crude futures rose 2.6% on Monday after U.S.

President Donald Trump said Iran's response to a U.S. peace

proposal was "unacceptable."

* Data last month showed that British inflation ​rose to

3.3% in March from 3.0% in February.

* Bank of England Governor Andrew Bailey has also warned

that policymakers would face a "difficult judgement call" in the

coming months on whether to raise rates.

* Auto stocks were the biggest drag, falling

4.3%.

* The personal goods sector also fell 2.2%,

hurt by a 2.3% drop in shares of Burberry ( BBRYF ).

* Compass Group ( CMPGF ) shares rose 2.5% after it raised its

2026 profit outlook, betting on demand for workplace dining and

new contract wins.

* Separately, an industry survey showed that Britain's jobs

market had lost momentum in April due to cost pressures stemming

from the Middle East conflict.