Pakistan is preparing international legal action over India's suspension of a key river water-sharing treaty, a government minister told Reuters, as tensions intensify between the neighbours following an attack on tourists in India-administered Kashmir.

Decades-long tensions between India and Pakistan are once again threatening regional stability, as Islamabad warns New Delhi could launch an incursion following a recent terrorist attack in Kashmir.

A top Pakistan defense official warned of the possibility of war with India but said it can be averted, as tensions rise over last week’s militant attacks in the northern region of Kashmir that killed 26 people.