Iran is nearing an agreement with China to acquire advanced supersonic anti-ship missiles, a development that could significantly raise the threat to U.S. naval forces operating in the region, according to a Reuters report citing multiple sources familiar with the negotiations.

The proposed deal involves China’s CM-302 anti-ship cruise missiles, weapons designed to fly low and fast to evade ship defenses.

Defense analysts say the system could complicate naval operations in the Persian Gulf and surrounding waters, particularly as the United States deploys a large concentration of military assets near Iran amid escalating tensions.