Saudi Arabia wants to contain a renewed conflict with Houthi militants through behind-the-scenes diplomacy, according to people familiar with the matter, in a bid to prevent clashes with the Iran-backed group hurting its oil industry and economy.

The kingdom has held talks with the Yemen-based Houthis via Omani mediators and is still preparing military options in case diplomacy fails, according to the people, who spoke on condition of anonymity so they could discuss sensitive information.

Riyadh conducted limited airstrikes on Houthi positions for two straight days in late July but is not thought to have done so again as it tries to find a diplomatic resolution with the Islamist organization, which controls most of Yemen’s population, the people said.