Oil hit 7-year highs as tight supply bites | Reuters

Oil hit 7-year highs as tight supply bites | Reuters

Oil prices on Tuesday climbed to their highest since 2014 as investors worried about possible supply disruption after attacks in the Middle East added to an already tight outlook.

Brent crude futures rose $1.03, or 1.2%, to settle at $87.51 a barrel. U.S. West Texas Intermediate (WTI) crude futures rose $1.61, or 1.9%, to settle at $85.43 a barrel.

Both benchmarks touched their highest since October 2014.

Supply concerns mounted this week after Yemen's Houthi group attacked the United Arab Emirates, escalating hostilities between the Iran-aligned group and a Saudi Arabian-led coalition. read more

After launching drone and missile strikes that set off explosions in fuel trucks and killed three people, the Houthi movement warned it could target more facilities, while the UAE said it reserved the right to "respond to these terrorist attacks." read more