London's FTSE 100 fell 0.1% to 10,824.74 points by 0927 GMT, while the FTSE 250 also slipped 0.1%. Oil prices traded near six-week highs as tit-for-tat strikes between the U.S. and Iran targeting vessels in the Strait of Hormuz and elsewhere kept crude flows low, raising concerns about inflation and interest rates. Expectations for a Federal Reserve (Fed) rate increase this month rose after strong U.S. jobs data, with the CME FedWatch tool putting the probability of a September hike at about 58%, up from 44% a month earlier. Most FTSE 100 sectors declined, led by beverages, down 1.6%, and personal care, drug and grocery stocks, down 0.8%; banks fell 0.3%. Energy stocks provided support, with BP and Shell each gaining about 1%. Standard Life rose 1.5% after reporting better-than-expected first-half profit, while Ashmore fell 1.4% despite a 17% increase in annual profit after narrowly missing analyst forecasts. Spire Healthcare gained about 3% after agreeing to a takeover by a consortium comprising funds managed by Toscafund, Three Hills and Ares, valuing its share capital at about £1,026 million ($1.39 billion). Trading volumes were expected to be low because U.S. markets were closed for a holiday. Investors were due to assess U.S. inflation and UK economic growth data for further indications of economic conditions.