India and Pakistan have intensified their hostilities over the hotly contested Kashmir region following a massacre of 26 mostly Indian tourists, which New Delhi linked to Pakistan. Pakistan denies it was behind Tuesday's attack by gunmen on a group of tourists in Kashmir.

India and Pakistan's reciprocal actions following the killing of 26 men by suspected militants at a tourist spot in Kashmir are set to further curtail trade, which has more than halved since 2018, trade analysts and exporters said.

The Pakistani government said that if India followed through on a threat to block rivers it would take it as “an act of war.”