LONDON (AFP) - Oil prices jumped above 67 dollars on Monday, reversing earlier losses as traders took their cue from rebounding Wall Street stocks and geopolitical concerns over key producer Iran, analysts said. New Yorks main contract, light sweet crude for November delivery, jumped 1.03 dollars to 67.05 dollars per barrel. Brent North Sea crude for delivery in November gained 74 cents to 65.85 dollars a barrel. Wall Street shares roared back Monday after a poor showing last week, boosted by a pick-up in merger and acquisition activity. Xerox Corp. said it will acquire Affiliated Computer Services for about 6.4 billion dollars, while Abbott Laboratories said it would purchase the pharmaceutical unit of Belgium-based Solvay for about 6.6 billion dollars. New Yorks Dow Jones Industrial Average had climbed 1.35 percent by 1530 GMT to 9,795.86 points. The market also won support from jitters about Iran, which pumps about 3.8 million barrels of crude oil per day and is the third biggest global oil exporter after Russia and Saudi Arabia. Iran on Monday test-fired long-range missiles that it says could reach targets inside Israel, as the defiant Revolutionary Guards staged war games amid tension with the West over Tehrans atomic drive. The UN nuclear watchdog had revealed on Friday that Tehran was building a second uranium enrichment plant, ratcheting up tensions with the West which suspects the Islamic republic wants to acquire atomic weapons, a charge it denies. Oil had closed higher on Friday on rekindled tensions over Irans nuclear programme, traders said. Geopolitics could well limit downward pressure as the week goes on though as members of the UN Security Council and Germany meet with Iranian officials in Geneva on Thursday, wrote analysts at the John Hall Associates energy consultancy. Tougher sanctions could be in place by the end of the year if negotiations fail to achieve a freeze in enrichment activity. In earlier trade on Monday, oil prices had pulled lower amid concerns about weak energy demand in the United States, which is the worlds biggest oil-consuming nation. Concerns over weak US energy demand are resurfacing after data released Friday showed orders for American durable goods fell 2.4 percent in August against market expectations for a rise of 0.4 percent. Durable goods are those likely to last three years or more, such as cars and appliances, and represent a key segment of the manufacturing sector. International economic news was generally on the disappointing side of market expectations, leaving metal and oil markets lacking impetus, analysts from the Commonwealth Bank of Australia said in a note to clients. The US economic data failed to allay concerns that US oil demand remains tepid. Energy demand has plunged after the global economy slipped late last year into its worst recession since the 1930s. This sent oil prices tumbling from historic highs of more than 147 dollars in July 2008 to around 32 dollars in December. Prices have since recovered somewhat but investors remain concerned over the pace of the upturn.