TB it had to be the former...he wanted Roth relaxed, but I think he underestimated Roth at that point. Each man was bluffing the other.

I think the Corleone's were weakened in the olive oil business when Pentangeli and Cicci were taken out. It is not shown in the film, but in the bactstory someplace, Michael had to find new people to fill Frankie's shoes.

Basically Frankie was running his own family with Cicci as his Number 2, even though he remained a part of the Corleone family when it came to dealing with other families, and people like Hyman Roth. By taking out Pentangeli, that would leave Cicci, who I don't think was Don material.