March 25 (Reuters) - The UK's FTSE 100 closed higher on

Wednesday, as investors bet on a de-escalation in the

U.S.-Israeli war with Iran, while assessing domestic inflation

data.

Iran is still reviewing a U.S. proposal to end the war in

the Gulf, despite an initial response that was negative, a

senior Iranian official told Reuters on Wednesday, indicating

that Tehran has so far stopped short of rejecting it outright.

The blue-chip FTSE 100 index closed up 1.4% and the

midcap FTSE 250 added 1.6%.

* British consumer price inflation held at 3.0% in February,

unchanged from January's rate, official figures showed on

Wednesday, ahead of a likely upward lurch as war in the Middle

East pushes up prices.

* Markets have priced in two or three quarter-point hikes

this year, with the Bank of England sharply increasing its

inflation forecast, predicting it would rise towards 3.5% by the

middle of the year.

* BoE policymaker Megan Greene said she had not been

close to voting to raise borrowing costs at last week's interest

rate-setting meeting, which was dominated by the economic hit

from the conflict in the Middle East.

* Miners rose 4.2% as gold prices gained

after a drop in oil prices eased inflation and rate concerns,

while banks climbed 2.4%, with both sectors

delivering the biggest boost.

* The energy sub-index finished flat

after oil prices fell on prospects of a ceasefire in the Middle

East war. Oil major Shell fell 0.8%.

* EnQuest ( ENQUF ) fell 4.7% after the North Sea-focussed oil

producer maintained its 2026 production outlook, banking on

investments in Britain and Southeast Asia, after Britain's

windfall levies hit last year's post-tax profit.

* ASOS rose 13% after the online retailer reported

a 50% jump in first-half profit, helped by cost cuts, app

improvements and a sharper fashion offering.