Crude oil futures ended at their highest level since 2014 on Tuesday on worries about possible supply disruptions after Yemen's Houthi group attacked the United Arab Emirates (UAE). A suspected drone attack in the United Arab Emirates has killed three people and injured six others. While Houthi rebels far away in Yemen claimed credit for the attack and warned to attack more facilities, the UAE said it reserved the right to respond to these terrorist attacks. The attack raises the geopolitical risk in the region and may signal the Iran-US nuclear deal is off the table for the foreseeable future. That would mean Iranian oil barrels are off the market, boosting demand for similar grade crude originating elsewhere. Both benchmarks hovered near their highest levels since October 2014 as attacks in the Mideast Gulf added to an already tight supply outlook.
Benchmark crude oil futures for February delivery rose $1.61 or 1.9 percent to settle at $85.43 a barrel on the New York Mercantile Exchange. Brent crude for March delivery increased $1.03 or 1.2 percent to settle at $87.51a barrel on London's Intercontinental Exchange.