By Charlotte Greenfield ISLAMABAD (Reuters) -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.

India blames Pakistan for an attack on its tourists and threatens to disrupt Pakistani water supplies. Islamabad says that move would be an act of war.

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.

India renewed its claims after a deadly terror attack last week in Kashmir, a territory that it has long fought over with Pakistan.

A fter terrorists brutally killed 26 men in Jammu & Kashmir on April 22nd, Narendra Modi, India’s prime minister, did not mince his words. Breaking into English—a rarity—he warned: “India will identify,