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

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

Benchmark oil prices climbed to their highest level since 2014 on Tuesday as possible supply disruption after attacks in the Mideast Gulf added to an already tight supply outlook.

Brent crude futures rose $1.02, or 1.2%, to $87.50 a barrel by 0924 GMT, while U.S. West Texas Intermediate (WTI) crude futures jumped $1.36, or 1.6%, to $85.18 a barrel. Trade on Monday was subdued as it was a U.S. public holiday.

Both benchmarks touched their highest levels since October 2014 on Tuesday.

Supply concerns have risen 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