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* FTSE 100 down 1.9%

* FTSE 250 hits near 4-month low

* Energy stocks hit record high as oil prices surge

* Bank of England expected to pause rate cuts amid

inflation concerns

* HSBC ( HSBC ) considers cutting up to 20,000 jobs, Bloomberg

reports

March 19 (Reuters) - London's main indexes fell sharply

on Thursday as an intensifying conflict in the Middle East

sapped risk appetite, with investors also keeping a close eye on

the Bank of England's monetary policy verdict.

The blue-chip FTSE 100 fell 1.9% by 1020 GMT.

Meanwhile the mid-cap FTSE 250 was down 2%, hitting

its lowest level since November last year.

The energy sector rose 0.9% to a record high,

as oil prices jumped after Iran attacked energy facilities

across the Middle East following Israel's strike on its South

Pars gas field, a major escalation in the war.

Most of the other major sectors were trading in the red,

with metal miners and banks down

7.2% and 3.7% respectively, making them the day's worst

performers.

HSBC ( HSBC ) dropped 2.7% after Bloomberg reported that the

bank is considering job cuts of up to 20,000 roles.

Adding to the cautious mood, investors are awaiting the Bank

of England's policy decision at 1200 GMT.

The central bank now looks set to hold off on an interest rate

cut that had seemed all but certain before the Middle East

conflict erupted, and is expected to strike a vague tone on its

next steps as it monitors the potential inflationary fallout

from the war.

Meanwhile, British wages rose at their slowest pace since late

2020 in the three months to January, according to official data

which also suggested a weakening in employment might have

bottomed out before the start of the war in the Middle East.

Among other movers, IG Group ( IGGRF ) rose 5.5% to a record

high after saying it is exploring deals, partnerships and a

possible move from London to tap faster-growing markets.