March 31 (Reuters) - British stocks edged higher on

Tuesday but logged their worst monthly showing since 2020 as the

Middle East conflict drove a surge in oil prices, fuelling

worries about inflation and slowing economic growth.

The blue-chip index FTSE 100 rose 0.5% but snapped

an eight-month winning streak. The mid-cap FTSE 250

climbed 1.2% on the day, but ended a three-month run of gains.

* U.S. Defense Secretary Pete Hegseth said on Tuesday the

next few days in the war against Iran would be decisive and

warned Tehran that the conflict would intensify if it did not

make a deal.

* Precious metals miners rose 4.2% and

provided the biggest boost to the index as gold prices climbed,

with investors flocking to the safe haven amid inflation fears

and expectations of a hawkish monetary policy response.

* Official data from the ONS confirmed that Britain's

economy barely expanded at the end of 2025, adding to the

challenge for the government to keep growth on track this year

with the Iran war likely to push up inflation and hit demand.

* A BRC survey showed shop price inflation rose in March,

putting the Bank of England in focus as it monitors food prices

and inflation expectations.

* Investors are betting on two, or possibly three,

quarter-point rate hikes by the Bank of England before the end

of this year, a sharp reversal from rate cuts seen by traders

before the conflict.

* Raspberry Pi soared 47% after the single-board

computer maker posted better-than-expected rise in annual

adjusted core earnings.

* Unilever ( UL ) dropped 7.2% to its worst day since 2008

after the consumer goods firm said it was in advanced talks to

combine its food business with spice maker McCormick ( MKC ) in

a potential deal that would deliver $15.7 billion in cash and

give shareholders majority control of the merged entity.