Singapore: US President Donald Trump has called the leaders of Thailand and Cambodia and told them to make peace or risk losing a US trade deal, amid fears the border dispute that has left at least 32 people dead could escalate into all-out war.

Thailand and Cambodia exchanged heavy artillery fire for a second day on Friday as their worst fighting in over a decade intensified and spread to new areas.

President Trump threatened to withhold potential trade deals from Thailand and Cambodia amid a border conflict that has displaced tens of thousands of civilians and left at least 32 people dead.

Thailand and Cambodia exchanged heavy artillery fire for a second day on Friday as border fighting intensified and spread, while Cambodia's leader said Thailand had agreed to a Malaysian ceasefire proposal but then backed down.

Tensions have bubbled between the two neighbors for months, flaring on Thursday as Cambodia and Thailand exchanged fire.

The embassy has advised Indian citizens to avoid travelling to the Cambodia-Thailand border as the conflict enters its third day.

Analysts urge Asean to act quickly and facilitate dialogue, but warn the bloc’s efforts may ‘no longer be sufficient’ given limited tools for intervention.

You can reach Shane by emailing [email protected] Thailand launched airstrikes against Cambodian forces along their disputed border after troops exchanged fire in a dramatic eruption of tensions between the two Southeast Asian neighbors.