China's ambassador to the United Nations has called for an immediate and lasting ceasefire in Gaza, urging renewed international efforts toward a two-state solution and warning that escalating tensions across the Middle East are increasing humanitarian and economic risks.

Fu Cong, China's permanent representative to the UN, said at a Security Council meeting on Tuesday that the current situation is "dealing a serious blow to regional stability and the global economy".

The Palestinian question is "deteriorating at an accelerated pace", with continuing hostilities in Gaza and expanding settlement activities in the West Bank undermining the basis for a two-state solution, Fu said.

"Parties concerned, especially Israel, must fully observe the ceasefire agreement and achieve a genuine, comprehensive and lasting ceasefire," he said, urging Israel to fulfill its obligations under international humanitarian law, fully open border crossings, lift restrictions on humanitarian supplies, and stop attacks and pressure on humanitarian agencies.

Regarding the developments in the occupied West Bank, Fu said settlement expansion and settler violence have displaced tens of thousands of Palestinians. "Settlement activities seriously violate international law and Security Council Resolution 2334."

Reaffirming China's position on a political settlement, he said the only viable way to resolve the Palestinian question is the two-state solution.

"Any arrangement must uphold the principle of Palestinians governing Palestine, respect the will of the Palestinian people, and contribute to, rather than undermine, the two-state solution," he said.

Ahead of the meeting, representatives of Bahrain, Denmark, France, Greece, Latvia, Pakistan, Somalia and the United Kingdom issued a joint statement opposing "the annexation of any part of the Occupied Palestinian Territory and any forcible displacement of the Palestinian people".

The statement reaffirmed that such actions "violate international law, undermine peace efforts, and jeopardize the prospect of achieving a just and lasting peace".

On Monday, Palestinian President Mahmoud Abbas warned of the dangerous situation in the West Bank and East Jerusalem, and called for the conclusion of the second phase of the Gaza ceasefire agreement.

Israeli authorities' plans to implement the "Greater Israel" project pose a threat to the entire region and the world, undermine the entire political process, and violate UN resolutions and international law, Abbas said in a phone call with his Indonesian counterpart Prabowo Subianto, reported the Palestinian news agency WAFA.

Xinhua contributed to this story.