London's FTSE 100 rises as HSBC lifts financial stocks; Middle East tensions linger

July 24 (Reuters) - Britain's FTSE 100 index climbed on Friday, helped by gains in HSBC shares that boosted financial stocks, while investors monitored oil prices and escalating hostilities in the Middle East.

The blue-chip FTSE 100 index rose 0.9% to 10,736.23 points, while the mid-cap FTSE 250 also climbed 0.3%. Both indexes were on track to end the week higher. They both logged a second consecutive week of gains.

• HSBC rose 1.7% after Allianz agreed to acquire its life insurance business in Singapore for S$2.7 billion ($2.1 billion), as the lender continues to streamline operations and focus on its core Asian banking business.

• 3i Group gained 3.1%, after UBS raised its target price on the investment company to 3,200 pence from 2,900 pence a share.

• On the geopolitical front, U.S. missiles struck targets across Iran, reaching as far as its Caspian coast after President Donald Trump promised "major military punishment" for Iran and its Houthi allies in Yemen for extending the Middle East war. [O/R]

• Energy shares fell 1.1%, with BP and Shell down 1.6% and 0.9%, respectively.

• In other news, the United States imposed new tariffs of 10% and 12.5% on goods imported from 60 trading partners.

• British retail sales rose unexpectedly in June, official data showed, adding to evidence of a pickup in economic activity as warm weather and the soccer World Cup boosted consumer spending.

• British companies reported their first growth in three months in July, helped by a brief respite in the U.S.-Israeli war with Iran.

• Among individual stocks, discoverIE rose 12.5% to the top of the FTSE mid-cap index after the electronics components maker said its annual earnings are expected to exceed market expectations.

(Reporting by Tharuniyaa Lakshmi in Bengaluru; Editing by Joyjeet Das and Emelia Sithole-Matarise)