UPDATE 1-London's FTSE 100 outshines Europe as Middle East tensions lift oil majors

UPDATE 1-London's FTSE 100 outshines Europe as Middle East tensions lift oil majors
UPDATE 1-London's FTSE 100 outshines Europe as Middle East tensions lift oil majors

* FTSE 100 up 0.3%, FTSE 250 down 0.2%

* IQE drops as Huawei curbs hit revenue

* Oil majors, miners among biggest gainers

* Domino's Pizza slumps among midcaps (Adds company news items, updates share prices)

June 21 (Reuters) - The FTSE 100 inched up on Friday, with oil majors rallying as crude prices rose amid tensions in the Middle East, while semiconductor company IQE plunged after warning that the U.S. ban on Huawei was hurting orders.

The FTSE 100 was up 0.3% by 0813 GMT, outperforming its European peers, which benefit less from the oil-price boost. The U.S. Federal Reserve and the European Central Bank this week signalled more stimulus if the economy weakens, helping place the index on course for a third week of gains.

Oil heavyweights Shell and BP were up about 1% after a report said U.S. President Donald Trump had approved military strikes against Iran, before pulling back from launching the attacks.

By contrast, the domestically focussed FTSE 250 midcap index slipped 0.2% as worries about a no-deal Brexit pressured sterling.

Bank of England Governor Mark Carney dismissed claims from Boris Johnson, the frontrunner to be Britain's next prime minister, that the country can avoid European Union tariffs in a no-deal scenario.

IQE Plc, which makes semiconductor wafers for chips, slumped 39% and was on course for its worst day on record after warning annual revenue would be lower than expected because of U.S. restrictions on China's Huawei, which are affecting orders.

The news added to gloom among peers. U.S. chipmaker Broadcom last week rattled the industry with a forecast that U.S.-China trade tensions and the curbs on Huawei would wipe $2 billion off its sales this year.

European chipmakers Siltronic, AMS, Infineon, Dialog Semiconductor and STMicroelectronics fell by 1-4%.

Blue-chip miners Glencore and BHP got a lift as copper prices extended gains made on signals that the U.S. Fed is ready to cut interest rates as early as next month.

Domino's Pizza Group fell 5% after a frontrunner to replace its outgoing chief executive slapped down a media report that he would step into the role, insisting he was invested in his job as European head of Domino's Pizza Enterprises.

Metro Bank ended a six-day losing streak with a 6% rise, topping gainers on the midcap index. The stock has plunged this year after it disclosed an accounting error in January that has subsequently hit its capital and led to a cash call. (Reporting by Muvija M in Bengaluru; Editing by Bernard Orr and Dale Hudson)

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