China violated the sovereign rights of the Philippines in an area of the South China Sea, an international tribunal ruled on Tuesday, in a closely-watched dispute that risks stoking further tensions in Southeast Asia.

"China had violated the Philippines' sovereign rights in its exclusive economic zone by interfering with Philippine fishing and petroleum exploration, by constructing artificial islands and failing to prevent Chinese fishermen from fishing in the zone," the Hague-based Permanent Court of Arbitration said in a statement.