As an admin or report admin of the tenant, you can embed reports from workspaces within your Power BI environment. To do so, navigate to Administration -> Power BI Reports and click on 'Manage Workspaces'.
When using Service Principal to manage workspaces and reports, you'll only have visibility of the workspaces accessible to your Service Principal.
Manage Workspaces
After adding workspaces from which you wish to embed reports, you can click on 'Add New Report' to view the available reports within those specific workspaces.
Add report from workspaces
Now, users with access roles to that report can log in to the tenant and view the reports with their Power BI Pro license or via the Power BI Service Principal.
Report embedded to tenant
To get more information about report management click here.