Saudi Arabia says it has agreed to allow U.S. oil company Chevron to resume exploration and production in the kingdom

Saudi Arabia has agreed in principle to allow Chevron to reopen exploration and produce oil in the country, a senior Saudi official said Sunday.

Saudi Arabia, the world’s largest oil exporter, had halted exploratory drilling in the area because of an ongoing Saudi blockade, which has blocked imports of oil from Venezuela and other countries.

The kingdom has previously blocked the flow of crude oil to Iran and has also closed ports in Iran.

The Saudi-U.S.-led coalition in Yemen began its military campaign last year, which led to the collapse of the Houthi movement and the killing of hundreds of civilians.

Since then, Riyadh has imposed a brutal blockade on the Yemeni port city of Hodeidah and other areas in Yemen, which Saudi Arabia accuses of supporting the Houthis.

Saudi officials have said the blockade is needed to protect Yemen’s oil and gas industry from Iranian-backed militias.