Oil prices continued to rally on Wednesday, with U.S. crude climbing to three-week high, as escalating turmoil in the Middle East provided support in the market.

The Iraqi forces completely ended major operations to recapture disputed areas claimed by Baghdad and the semi-autonomous region of Kurdistan, the Iraqi military said on Wednesday.

Meanwhile, Iranian Supreme Leader Ayatollah Ali Khamenei said Wednesday that Iran will cut 2015 international nuclear deal into shreds if the United States chooses to tear it up, local media reported.

Traders also focused on oil inventory data. Crude oil inventories fell 5.7 million barrels in the Oct. 13 week to 456.5 million, 2.6 percent below the level a year ago, the Energy Information Administration (EIA) said in its weekly report Wednesday.

The West Texas Intermediate for November delivery was up 16 U.S. cents to settle at 52.04 dollars a barrel on the New York Mercantile Exchange, while Brent crude for December delivery rose 27 cents to close at 58.15 dollars a barrel on the London ICE Futures Exchange.