June 10 (Reuters) - UK's FTSE 100 closed higher on Wednesday with energy and consumer staples stocks providing a lift, though the index remained stuck near three-week lows as investors monitored a fragile ceasefire in the Middle East.
The blue-chip FTSE 100 index closed 0.3% higher at 10,254.8 points, hovering near its lowest levels since mid-May. The midcap FTSE 250 advanced 0.5%.
o Consumer staples majors Tesco and Unilever were among the biggest gainers, climbing over 2% each.
o Middle East tensions were high as the U.S. and Iran traded fire.
o U.S. President Donald Trump said Iran had taken too long to negotiate a deal and would "have to pay the price".
o Crude oil prices jumped after Trump's remarks and UK energy stocks climbed 1.9%.
o WH Smith plunged 16.2% after cutting its annual profit forecast for the second time in two months and launched an equity raise to bolster its finances.
o Banks were among the biggest sectoral decliners with a 1% fall.
o Shares of Hong Kong exposed HSBC and Standard Chartered each fell more than 1%.
o The lenders have been under pressure since Beijing unveiled tighter capital controls to limit cross-border investments.
o Inflation concerns have led investors to price in a 25 basis point interest rate hike by the Bank of England by September, according to LSEG-compiled data.
o Elsewhere, water utility Pennon Group slipped 1.7% after its new CEO warned operational discipline must improve.
o EnQuest shot up 27% after the North Sea-focused oil producer agreed to buy interests in four offshore contracts in Malaysia.
(Reporting by Johann M Cherian and Shashwat Chauhan in Bengaluru; Editing by Nivedita Bhattacharjee and Barbara Lewis)



















