(Oil & Gas 360) – Crude oil prices were headed for a second consecutive weekly decline Friday as expectations of reduced U.S. military escalation against Iran eased immediate concerns about Middle Eastern supply disruptions. However, continuing attacks on shipping and energy infrastructure, combined with rising U.S. petroleum inventories, are creating competing pressures on global oil markets.Brent crude futures traded near $96.04 per barrel in Friday morning trading, while West Texas Intermediate (WTI) hovered around $88.59. Both benchmarks were on track to decline approximately 2.3% to 2.4% for the week, following steep losses of 16% for Brent and 13% for WTI during the previous week.The latest weakness followed comments from President Donald Trump indicating that Washington did not require a negotiated agreement with Iran to end the conflict. Market participants interpreted the remarks as suggesting the United States would continue emphasizing its blockade of Iranian oil shipments and economic sanctions rather than immediately pursuing another round of direct military strikes.The shift in expectations has reduced some of the geopolitical premium embedded in crude prices, although the underlying conflict remains unresolved. Fighting involving the United States, Israel and Iran has disrupted regional energy markets for months, creating uncertainty surrounding production, transportation and the availability of Middle Eastern crude.Security conditions in the Persian Gulf remain particularly important. Iran’s military reported Thursday that four oil tankers were struck by explosions in the Strait of Hormuz after allegedly disregarding warnings, although those claims could not be independently verified. Yemen’s Iran-aligned Houthi movement also claimed attacks against Saudi Arabia’s East-West oil pipeline, infrastructure near the Red Sea port of Yanbu and a Saudi Aramco building in Riyadh.Beyond geopolitical developments, U.S. inventory data is contributing to downward pressure on prices. The Energy Information Administration reported that commercial crude inventories increased by 4.7 million barrels to 414.4 million barrels during the week ended November 6, compared with market expectations for a decline of approximately 1.1 million barrels.The increase reflected stronger crude imports and softer refined petroleum product demand, suggesting that domestic consumption may not be absorbing available supplies as quickly as anticipated.For U.S. exploration and production companies, the recent retreat in crude prices could influence near-term cash flow expectations, capital spending decisions and hedging strategies. Although prices remain elevated by historical standards, continued volatility complicates planning for operators evaluating drilling programs and shareholder distributions.Midstream operators and refiners face a different set of considerations. Changes in crude sourcing, transportation routes and product demand can affect pipeline utilization, refining margins and export opportunities, particularly when international supply disruptions create regional pricing differences.For institutional investors and family offices, the market’s response illustrates the importance of separating geopolitical headlines from measurable changes in physical oil supply and demand. A reduction in expectations for military escalation does not necessarily mean that transportation risks or supply constraints have disappeared.The near-term direction of crude prices will depend on developments in the Strait of Hormuz, U.S. inventory trends, Middle Eastern production and whether Washington’s strategy produces a sustained reduction in regional hostilities. Until greater clarity emerges, energy markets remain exposed to significant price swings in either direction.About Oil & Gas 360 Oil & Gas 360 is an energy-focused news and market intelligence platform delivering analysis, industry developments, and capital markets coverage across the global oil and gas sector. The publication provides timely insight for executives, investors, and energy professionals. Disclaimer This informational, opinion, and insights article is provided for informational purposes only and does not constitute investment, legal, or financial advice. The views expressed are based on publicly available information and market conditions at the time of publication and are subject to change without notice.