April 2 (Reuters) – London’s FTSE 100 stock index closed higher on Thursday after Britain said it would host talks on reopening the Strait of Hormuz.

British foreign minister Yvette Cooper will chair the virtual meeting of about 35 countries, including France, Germany, Italy, Canada and the United Arab Emirates on Thursday to explore ways to restore freedom of navigation in the area. The United States is not due to attend.

U.S. President Donald Trump has vowed more aggressive strikes on Iran, saying military operations would be intensified.

Iran is drafting a protocol with Oman to monitor traffic in the Strait of Hormuz, the official IRNA news agency cited the Deputy Foreign Minister as saying on Thursday.

The blue-chip FTSE 100 index closed up 0.6%, while the midcap FTSE 250 closed down 0.2%. Both indexes logged weekly gains in a holiday-shortened week.

* The energy index rose 2.7%, leading gains as oil hitaround $110 a barrel after U.S. President Donald Trump vowedcontinued attacks on Iran. [O/R] * Oil majors BP and Shell rose 2.6% and 2.9% respectively,ranking among the top gainers on the benchmark index. * The pharma index climbed 1.7% as AstraZeneca rose 1.9%after it said a late‑stage trial showed its Imfinzi combinationimproved progression‑free survival in a common liver cancer. * British business confidence fell from +2.8 on the eve ofthe conflict to -1.1 by the end of the 10-week survey period onMarch 16, according to a survey of accountants that echoedsimilar concerns from other groups since the start of theU.S.-Israeli attacks. * British companies expect to raise prices more quickly inthe coming 12 months as they respond to a surge in energy pricesdue to the Iran war, a Bank of England (BoE) survey showed. * Markets are pricing in more than two quarter‑point hikesby the BoE by the end of the year, according to data compiled byLSEG. * Markets will be closed for Good Friday and Easter Monday.

(Reporting by Tharuniyaa Lakshmi in Bengaluru; Editing by Sahal Muhammed and Jane Merriman)