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* FTSE up 1.3 pct, best day in a month
* Oil majors up as U.S. pulls out of Iran deal
* Belgian billionaire sells stake in Burberry, shares tumble
* Imperial Brands jumps after H1 results(Updates prices, adds details)
By Julien Ponthus and Helen Reid
LONDON/MILAN, May 9 (Reuters) - Oil stocks drove Britain'sleading stock index sharply higher on Wednesday after the U.S.decision to pull out of the Iran nuclear deal sent crude pricessoaring.
The FTSE 100 index jumped 1.3 percent, easilybeating other European bourses as commodities stocks surged andstrong results sent tobacco firm Imperial Brands up. It was theindex's best day in a month
Oil majors Royal Dutch Shell and BP, up 3.1percent and 3.3 percent respectively, delivered the biggestboost to the index as oil prices rose more than 2 percent. U.S.sanctions against Iran, an OPEC member, are expected to tightenglobal oil supply.
Leading the FTSE was heavyweight tobacco firm ImperialBrands, which jumped 6.2 percent after pledging to stepup divestments and reporting first-half sales and profitsslightly ahead of estimates.
Jefferies analysts found "a number of areas of encouragementfor the market to hang its hat on" in Imperial's results,including volumes, progress with its vapour business, and plansto sell off non-strategic assets for up to 2 billion pounds overthe next 12 to 24 months.
Fashion house Burberry was the worst performer,down 6.1 percent after Belgian billionaire Albert Frere's GroupeBruxelles Lambert (GBL) sold its entire stake, amounting to 6.6percent of Burberry's shares.
"We do not believe (the disposal) should be seen as anindicator of any deterioration in Burberry's fundamentals or achange in the equity story," said Berenberg analysts, notinghowever that such an early disposal - after 1 1/2 years - isunusual in the context of GBL's long-term investment strategy.
Compass Group shares also fell, down 4.7 percentafter first-half results from the world's biggest catering firmdisappointed due to a steep decline in margins in Europe.
Bakery and food-to-go company Greggs sank 15 percentafter it warned that profits for 2018 were likely to fall shortof expectations and be at a similar level to 2017, blaming a dipin consumer demand.
"We have never been especially relaxed with the high teenmultiple and the 'safe haven' status that this implied ofGreggs," wrote Peel Hunt analysts in a note.
"That halo has now slipped, and whilst turning negativeafter the shares have fallen 15 percent may appear to beambulance-chasing, the shares still trade on nearly 17xprice-to-earnings and that for us is too high," they added,downgrading their recommendation on the stock from "hold" to"reduce".
Still in the mid-cap segment of the market, shares inprecision engineering group Renishaw soared 14.6percent, on track for their best day in over two years after itraised its 2018 revenue guidance.
Sub-prime lender Provident Financial also jumped 6.6percent as it said its recovery plans would deliver 2018 resultsin line with internal plans.
M&A was not a big stock mover. Vodafone inched up0.5 percent after the world's second-largest mobile operatorannounced a $21.8 billion deal to buy Liberty Global'sassets in Germany, the Czech Republic, Hungary and Romania.(Reporting by Julien Ponthus and Helen ReidEditing by Alison Williams)
