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Oil prices rose sharply on Wednesday to hit their highest level in nearly a month, as U.S.-Iran tensions simmered and industry data showed a larger than anticipated drawdown in crude inventories.

Meanwhile, the Philadelphia Energy Solutions (PES) refinery, located in the busiest and most densely populated corridor of the U.S., is facing a possible return to bankruptcy after a massive fire reportedly caused substantial damage to the complex.

Benchmark Brent crude climbed a little over 1 percent to $64.95 per barrel, after having touched as high as $66.25 a barrel, the highest level since May 31.

U.S. West Texas Intermediate (WTI) crude futures were up as much as 1.8 percent at $58.85 per barrel, after having hit its highest level since May 30 at $59.13 a barrel.

The American Petroleum Institute (API) reported late Tuesday that U.S. crude stockpiles fell by 7.5 million barrels for the week ended June 21 to 474.5 million, compared with analyst expectations for a decline of 2.5 million barrels. Crude stocks at U.S. delivery hub Cushing, Oklahoma, fell by 1.3 million barrels.

Data from the Energy Information Administration is due later in the day, with analysts expecting crude inventories to fall by 2.8 million barrels last week.