UK's FTSE 100 slips as oil tops $100 on Middle East conflict; bond yields rise

July 23 (Reuters) - Britain's FTSE 100 eased on Thursday as global risk sentiment took a hit with government bond yields up and crude oil prices passing the crucial $100 a barrel mark as the Middle East conflict showed no signs of slowing down.

The blue-chip FTSE 100 index fell 0.7% to 10,639.2 points, reversing most of the previous session's 1% rise, while the midcap FTSE 250 was down 1.3%. Both indexes marked their biggest one-day fall so far this month.

• Precious metal miners dropped 5.1% as gold prices fell around 2% on a stronger dollar and rising inflation concerns due to the oil price spike.

• Utilities lost 2.5%, the personal goods sector was down 2.2% and beverages fell 2.1%.

• Travel and leisure shares retreated 1.9% with shares of airlines including Wizz leading declines as higher oil prices weighed.

• Mitchells & Butlers fell 5.1% after the pub group reported flat third-quarter like-for-like sales, citing the adverse impact on its food business from the ongoing heatwave.

• Heavyweight banks dropped 1.3% and aerospace and defence eased 0.8%.

• Government bond yields in the United States and across Europe rose as the threat of higher inflation increased the risk of future interest rate hikes.

• Brent crude's more than 6% rise helped Britain's energy giants advance 2.1%.

• U.S. President Donald Trump promised "major military punishment" for Iran and its Houthi allies, after the Yemeni fighters struck two Saudi oil tankers in the Red Sea, extending the Middle East war to a second major shipping chokepoint.

• Britain's new prime minister, Andy Burnham, said he would lower business rates for pubs, clubs and live music venues by 20% from April, his third announcement in three days of measures to help households and businesses.

• Takeover target easyJet rose 2.7% despite the airline's third-quarter profit slumping 70% as the Iran war led to volatile fuel prices and made travellers wary, though earnings beat analysts' estimates and the carrier indicated somewhat clearer skies heading into peak summer.

(Reporting by Tharuniyaa Lakshmi and Shashwat Chauhan in Bengaluru; Editing by Tasim Zahid, Kirsten Donovan)