NEW YORK, August 4. /TASS/. Saudi Arabia is making diplomatic efforts through Oman to avoid an escalation of the conflict with the Houthi rebels from the Ansar Allah movement, Bloomberg quoted sources as saying.

At the same time Saudi Arabia is preparing for war, if the negotiations collapse.

Bloomberg said the United States has privately discouraged a major Saudi military retaliation to Houthi strikes on vessels off its Red Sea coast for fear that worsening Saudi-Houthi hostilities would further disrupt global shipping and energy markets, and possibly close the Bab el-Mandeb Strait, another chokepoint vital for flows of energy.

Besides, Bloomberg says, an escalation with the Houthis could draw Riyadh deeper into the conflict with Iran.

On July 20, Houthi imposed a naval blockade on Saudi Arabia. The next day the Saudi-led coalition began protecting merchant ships in the Bab el-Mandeb Strait. Later, the Houthis hit two Saudi oil tankers with missiles and drones in response to the violation of their naval blockade.