US President Barack Obama and his Chinese counterpart Hu Jintao have spoken on the phone for about an hour.

The two leaders discussed economic relations and the Iran issue. Mr Obama stressed the importance of cooperation to ensure Iran adheres to international agreements. The US administration is looking for support for a new UN resolution against Iran, and China has the right of veto on the UN Security Council. Iran is suspected of using its nuclear programme to build a nuclear weapon.

Mr Obama and Mr Hu reportedly also discussed Tibet and Taiwan. Tensions between China and the US have mounted as a result of an official reception of the Dalai Lama at the White House and US weapon shipments to Taiwan.

It is not clear whether the two leaders discussed China's currency, the Yuan. Washington suspects Beijing of manipulating its exchange rate to boost exports.