Saudi Arabia has held talks with Yemen’s Houthis through Oman’s mediation in order to prevent escalation of the fighting, while at the same time keeping military options ready in case diplomacy fails. Bloomberg reported this, citing sources who spoke on condition of anonymity.

Based on this report, the United States has, discreetly, urged Saudi Arabia against launching a broad military retaliation in response to the Houthis’ attacks on vessels off the Red Sea coast.

Washington’s concern is that escalation of the conflict between Riyadh and the Houthis would further disrupt shipping and global energy markets, and could even lead to the closure of the Bab al-Mandeb Strait.

Bloomberg added that escalation with the Houthis could draw Riyadh deeper into confrontation with the Islamic Republic.