An early rise in crude oil prices was short-lived on Friday, with futures ending the week lower as tensions in the Middle East heightened.

News of U.S.-led airstrikes against Houthi rebels in Yemen initially sent crude oil futures up as much as 4%, but markets largely remained calm, and prices stayed below where they were a year ago.

Oil traders expect top producers such as the U.S. to provide enough new output to meet expected demand growth this year, even as OPEC+ continues to cut output and pledges to remove an additional 2 million barrels per day from the market.

While the lack of Red Sea shipments has caused shipping difficulties for some crude supplies, the impact on physical oil markets has so far been minimal.

U.S. continues to pump crude oil at daily rates not seen before. According to the federal Energy Information Administration, U.S. oil production reached an all-time high of 12.8 million barrels a day in 2023 and kept growing to 13.1 million into 2024. That’s up from the most recent trough of 5 million barrels a day in 2008, and enough for the U.S. to keep its newly established title as the No. 1 global crude oil producer.