India and Pakistan maintain heightened tensions following the 2025 Pahalgam attack and India's Operation Sindoor, which involved strikes on terrorist infrastructure and escalated into a brief four-day conflict ending in ceasefire. Diplomatic channels remain frozen, with India conditioning any talks on verifiable Pakistani action against cross-border terrorism and holding the Indus Waters Treaty in abeyance. A fresh border incident on October 2, 2026, prompted mutual diplomatic summons over alleged civilian deaths and infiltration attempts. At the UN, Pakistan has warned against India's asserted "new normal" of preemptive military responses and reaffirmed full-spectrum deterrence, while India has reiterated its right to retaliate against terrorism without yielding to nuclear coercion. Recent Indian military statements emphasize readiness for stronger action against future provocations, sustaining trader focus on escalation risks amid ongoing infiltration concerns and absent de-escalation mechanisms.