LONDON (Reuters) - Brent crude oil rose above $100 on Monday after a weekend rescue package for Spanish banks calmed fears of an imminent euro zone collapse and the breakdown of nuclear talks between the U.N. and Iran renewed concerns over oil supplies. The larger-than-expected Spanish rescue eased some worries over Europe's debt crisis, boosting stock markets and a range of commodities. But markets remained nervous, given that the pace of global growth was uncertain and elections were due in Greece on Sunday. Brent futures for July rose as high as $102.21 a barrel, up $2.74, and traded around $100.30 by 0720 EDT. U.S. crude futures jumped to as much as $86.64 and were 85 cents higher at $84.95 by 0720 EDT. "The aid for Spanish banks has revived risk appetite for a while at least," said Carsten Fritsch, commodity analyst at Commerzbank in Frankfurt. "This positive market sentiment could last some days, although there is still event risk - the Greek elections, Iran - that could prevent big gains from here," he added. Euro zone finance ministers agreed on Saturday to lend Spain up to 100 billion euros ($125 billion), making the country the fourth to seek assistance since Europe's debt crisis began. Yet with the economy contracting, one in four Spanish workers out of a job and Greek elections next weekend overshadowing the entire zone, investors are wary how far the latest deal will go in helping the region tackle its debt crisis. GREECE Leaders of Greece's two traditional ruling parties warned on Sunday of a political stalemate after parliamentary elections next week and called for a government of national unity to prevent a repeat of the confusion that followed the last vote in May. Opinion polls cannot now be published in Greece, so the outcome of the June 17 elections is uncertain. The result will decide Greece's future, with voters split over a 130 billion euro international bailout to prop up the economy, now in its fifth year of recession, at the price of harsh and resented austerity measures. A slide in the dollar also helped boost oil. The dollar index slipped 0.65 percent, while the euro steadied. On the supply front, fears of a disruption to Middle East oil supplies resurfaced after the U.N. nuclear watchdog and Iran failed to unblock a probe into suspected atom bomb research by the Islamic state, dimming chances for success in higher-level negotiations later this month. The International Atomic Energy Agency, using unusually pointed language, said no progress had been made in the meeting aimed at sealing a deal on resuming the IAEA's long-stalled investigation, and it described the outcome as "disappointing". The global oil market is well supplied after several months of high production rates by the Organization of the Petroleum Exporting Countries. OPEC's president signaled on Monday the cartel could act to reduce supplies but was unlikely to set country production quotas at a meeting this week in Vienna. The outlook for the global economy remained uncertain. China's inflation, industrial output and retail sales all flagged in May for a second straight month of sluggish growth, data showed. India has reported its weakest quarterly growth in nine years, and Brazil almost stalled in the first quarter, raising doubts as to how much emerging markets can drive the world economy as industrialized nations struggle with debt. Supporting oil were figures showing China's crude imports rose to a record 25.48 million tonnes, or about 6 million barrels per day in May, up 18.2 percent from a year ago. But analysts cautioned against optimism as actual demand from users remained weak and the bulk of oil imported in May was likely to have been moved into storage. China's implied oil demand inched up only 0.4 percent in May year-on-year, after April's first yearly decline in over three years. (Additional reporting by Manash Goswami in Singapore; editing by Jane Baird)

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