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.

Pakistan’s defense minister 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.

Pakistan is also considering taking action at the Permanent Court of Arbitration or at the International Court of Justice in the Hague where it could allege that India has violated the 1960 Vienna Convention on the Law of Treaties,