Saudi Arabia is using behind-the-scenes diplomacy to prevent renewed fighting with Yemen’s Iran-backed Houthis from escalating and threatening the kingdom’s oil industry and economy, Bloomberg reported.

Riyadh has held indirect talks with the Houthis through Omani mediators while continuing to prepare military options in case diplomacy fails. Saudi Arabia wants the group restrained and Red Sea shipping protected, while the Houthis are pressing for economic concessions.