For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window
FTSE 100 down 0.5%, FTSE 250 down 1.2%
Airlines fall amid geopolitical tensions
Energy stocks soar on higher oil prices
Energean falls after suspending production offshore Northern Israel
June 13 (Reuters) - London's FTSE 100 retreated on Friday after closing at a record high in the previous session as Israel's attacks on Iran ramped up geopolitical tensions, but gains in energy stocks limited declines.
The benchmark FTSE 100 .FTSE was down 0.5% as of 0905 GMT, less than 1% away from an intraday record high. It is set for a fifth consecutive week of gains.
Israel launched large-scale strikes against Iran on Friday, targeting nuclear facilities and ballistic missile factories, to prevent Tehran from building an atomic weapon. Iran retaliated by launching 100 drones.
The development adds to caution in the global financial markets, which have been grappling with the impact of U.S. President Donald Trump's erratic tariff policy moves.
The heightened tensions in the oil-rich Middle East sent prices of crude soaring, last up 7% and weighing heavily on travel and leisure stocks .FTNMX405010.
British Airways owner ICAG ICAG.L fell 4.3%, EasyJet dropped EZJ.L 3.2%, while Wizz Air WIZZ.L was down 1.7%. Global airlines cleared out of airspace in the Middle East, diverting flights.
London-listed shares of cruise operator Carnival CCL.L were down 4%.
However, gains in commodity-linked stocks capped declines on the blue-chip index, with energy shares .FTNMX601010 up 1.7%, boosted by gains in giants Shell SHEL.L and BP BP.L.
As investors flocked to safe havens amid the heightened tensions, gold prices XAU= rose to over 1%, helping precious metal miners .FTNMX551030 up 1.3%.
Mid-caps in London .FTMC slid 1.2%, on track for their steepest single-day fall in more than two months.
Gas producer Energean ENOG.L bottomed the FTSE 250 after it said it had temporarily suspended the production and activities of its power floating production storage and offloading (FPSO) located offshore Northern Israel.
Markets will be looking ahead to the Bank of England's monetary policy meeting next week, where it is expected to keep interest rates on hold.
(Reporting by Purvi Agarwal in Bengaluru; Editing by Shailesh Kuber)
((Purvi.Agarwal@thomsonreuters.com;))
For related prices, Reuters users may click on - * UK stock report .L FTSE index: 0#.FTS6 techMARK 100 index: .FTT1X FTSE futures: 0#FFI: Gilt futures: 0#FLG: Smallcap index: .FTSC FTSE 250 index: .FTMC FTSE 350 index: .FTLC Market digest: .AD.L Top 10 by vol: .AV.L Top price gainers: .NG.L Top % gainers: .PG.L Top price losers: .NL.L Top % losers: .PL.L * For related news, click on - * UK hot stocks: HOT and GB Wall Street: .N Gilts report: GB/ Euro bond report GVD/EUR Pan European stock report: .EU Tokyo stocks: .T HK stocks: .HK Sterling report: GBP/ Dollar report: USD/ * For company prices, click on - * Company directory: UKEQ By sector: FTAX * For pan-European market data, click on - * European Equities speed guide................ EUR/EQUITY FTSE Eurotop 300 index........................... .FTEU3 DJ STOXX index................................... .STOXX Top 10 STOXX sectors........................ .PGL.STOXXS Top 10 EUROSTOXX sectors................... .PGL.STOXXES Top 10 Eurotop 300 sectors.................. .PGL.FTEU3S Top 25 European pct gainers.................... .PG.PEUR Top 25 European pct losers..................... .PL.PEUR
