Long-festering tensions over border territory have escalated into armed conflict between Cambodia and Thailand, leading to dozens of deaths on both sides and displacing tens of thousands of people.

The conflict is one of the deadliest clashes ever between the two countries. Thirty-four people have died, and over 165,000 have been displaced.

"The U.S. already flunked the test and that should be a wakeup call," a former senior U.S. State Department official told Newsweek.

Livestock offices in Thailand's border provinces are offering safe space for animals whose owners have had to flee the fighting with Cambodia.

Thai and Cambodian leaders will meet in Malaysia for talks to end hostilities, a spokesperson for the Thai prime minister's office said Sunday. This comes following pressure from U.S. President Donald Trump to end a deadly border dispute,

Kasem Prunratanamala of CGS International warns that both Thailand and Cambodia stand to lose economically from the ensuing conflict, as Thailand’s trade surplus with Cambodia becomes at risk and Cambodia’s casino industry faces a hit as Thai visitor revenues dry up.

The Thai warning came as the U.S. expressed its grave concern about the most serious fighting in years between the Southeast Asian neighbors. The U.S. and China compete for influence in fast-growing Southeast Asia, and both have good relations with Thailand and Cambodia.

Thailand and Cambodia traded accusations of fresh attacks Saturday as deadly border clashes entered a third day and President Donald Trump joined a chorus of international voices calling for a ceasefire.