U.S. Secretary of State Hillary Clinton has praised China and the Association of Southeast Asian Nations for reaching a preliminary agreement to peacefully resolve territorial disputes in the South China Sea.

At a meeting Friday with Chinese Foreign Minister Yang Jiechi on the sidelines of an ASEAN regional security forum in Bali, Indonesia, Clinton commended the two sides for reaching the deal.

The agreement aims to prevent conflict over several disputed islands and potential oil and gas resources. Washington has said peaceful resolution to the claims is an American national security interest.

China has been accused in recent months of trying to intimidate oil exploration by the Philippines and Vietnam in waters that are also claimed by Taiwan, Brunei and Malaysia.