The nuclear-armed rivals, which both claim Kashmir and administer separate parts of it, are at a dangerous crossroad after Tuesday’s militant attack, analysts said.

India blamed Pakistan on Wednesday for a militant attack that killed 26 people in Indian-held Kashmir, downgrading diplomatic ties and suspending a crucial water-sharing treaty that has withstood two wars between the nuclear-armed rivals.

India's External Affairs Ministry said the Indus Water Treaty will be suspended after an attack in Kashmir left over two dozen dead.