Crude oil storage tanks are seen from above at the Cushing oil hub, appearing to run out of space to contain a historic supply glut that has hammered prices, in Cushing, Oklahoma, March 24, 2016.
Crude oil storage tanks are seen from above at the Cushing oil hub, appearing to run out of space to contain a historic supply glut that has hammered prices, in Cushing, Oklahoma, March 24, 2016. Reuters / Nick Oxford

Oil rose to its highest since 2014 on Tuesday after Moscow ordered troops into two breakaway regions in eastern Ukraine, tempered by a declaration from Germany's Chancellor that the nation would not certify the $11 billion Nord Stream 2 pipeline.

The West took more measures to try to discourage Russia from going on the offensive in Ukraine, with Germany putting the certification of the Nord Stream 2 gas pipeline from Russia on ice, while the United States and European Union discussed potential sanctions.

"Markets are viewing the situation as a de-escalation of the crisis, and are hopeful conflict ends here," said Bob Yawger, director of energy futures at Mizuho.

Brent crude, the global benchmark, was up $1.59, or 1.7%, at $96.98 by 1:08 p.m. EDT (1808 GMT), having earlier reached its highest since September 2014 at $99.50.

U.S. West Texas Intermediate (WTI) crude jumped by $1.93, or 2.1%, from Friday to $93, with the market having been closed on Monday for a public holiday. WTI also touched a seven-year high on Tuesday as it peaked at $96.

The Ukraine crisis has added further support to an oil market that has surged on tight supplies as demand recovers from the COVID-19 pandemic.

The Organization of the Petroleum Exporting Countries (OPEC) and allies, together known as OPEC+, have resisted calls to boost supply more rapidly.

A senior British minister on Tuesday said Russia's move into Ukraine has created a situation as grave as the 1962 Cuban missile crisis, when a confrontation between the United States and Soviet Union brought the world to the brink of nuclear war.

Nigeria's minister of state for petroleum on Tuesday stuck to the OPEC+ view that more supply was not needed, citing the prospect of more production from Iran if its nuclear deal with world powers is revived.

Talks are ongoing on renewing Iran's nuclear agreement with world powers, which could eventually boost Iran's oil exports by more than 1 million barrels per day.