The Globe and Mail reports in its Wednesday edition that oil jumped 3 per cent on Tuesday to its highest level this month. A Reuters dispatch to The Globe reports that the rally, in thin trade with some markets closed for holidays, added to last week's gains of about 3 per cent after Houthi attacks on ships worried investors and as the violence in Gaza showed no sign of easing. Again Capital partner John Kilduff says, "There's plenty of geopolitical tensions today in terms of the Middle East and it has given some angst here to the security of the transit of oil and other goods." Explosions in the Red Sea off the coast of Yemen were reported on Tuesday after sightings of unmanned aircraft and missiles in two separate incidents. Yemen's Houthi military spokesman Yahya Sarea said on Tuesday the group launched an attack with missiles on an MSC United commercial ship in the Red Sea after it rejected three warning calls. Oil also found support from expectations the U.S. Federal Reserve will cut interest rates next year. Lower interest rates reduce consumer borrowing costs, which can boost economic growth and oil demand. The dollar index edged lower on Tuesday, within sight of a five-month low of 101.42 struck on Friday.