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Investing.com -- Tensions between India and Pakistan have escalated following a recent attack in the disputed Kashmir region, leading to impacts on trade and air travel. U.S. President Donald Trump, speaking on Friday, acknowledged the heightened tensions but did not indicate plans to intervene.
The attack, which took place on Tuesday, resulted in the death of 26 men at a tourist site in Kashmir. India has attributed the incident to Pakistani elements, an accusation Pakistan denies. This event marks the most severe incident in the region in nearly two decades.
Kashmir, a region claimed by both India and Pakistan, has been a longstanding point of conflict between the two nations, leading to two wars. The recent attack has further strained relations, with India suspending a crucial water sharing agreement and Pakistan closing its airspace to Indian airlines. Trade between the two countries is also under threat.
Indian stock markets experienced a decline on Friday due to fears of renewed tensions as Indian authorities continue to search for militants in the region. The markets later recovered some of their losses. The ongoing situation between India and Pakistan, as acknowledged by President Trump, continues to create tension in the region.
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