The FTSE 100 closed down 41.21 points, or 0.4%, at 10,332.30.

Iranian news agency Tasnim reported that Tehran had suspended dialogue with mediators in protest against Israel’s expanding Lebanon offensive.

Events in the Middle East continue to dictate the mood in the markets.

The FTSE 100 closed down 41.21 points, or 0.4%, at 10,332.30.

The FTSE 100 closed up 28.02 points, 0.3%, at 10,360.32.