Thai fighter jets hit two Cambodian army posts near their disputed border on Thursday, as troops clashed in multiple locations in an escalation of tensions that have already sparked a political crisis in Thailand.

At least one Thai civilian was killed and seven soldiers were injured in gunfire and artillery shelling, according to the Thai government. Clashes were reported from six locations along the contested frontier bordering Thailand’s northeastern region.

The fighting — which Thailand said was first triggered by Cambodian troops opening fire near a disputed temple site — is still ongoing. Thailand has also ordered evacuation of civilians from at least four border provinces as a precautionary measure, the Interior Ministry said. The Thai embassy in Phnom Penh advised citizens to leave the country in view of the escalating situation.

Cambodia contested the Thai version of events and accused Thai soldiers of starting the assault. Defense ministry spokesperson Maly Socheata condemned the Thai military action, saying Thailand’s use of heavy weapons and deployment of troops “to encroach on Cambodian territory is a clear violation” of international laws.

The skirmish came just hours after Thailand expelled Cambodia’s ambassador and recalled its own envoy from Phnom Penh in response to a second landmine explosion that injured five Thai soldiers on Wednesday. In retaliation, Cambodia downgraded diplomatic ties, withdrew its diplomats, and requested Thailand do the same, according to Cambodian state media.

Thailand’s financial markets were largely unmoved by the reports of clashes though it could further dent the outlook for an economy that’s already reeling from the threat of a 36% U.S. tariff on its exports. The baht, which earlier rose to the highest since February 2022, declined 0.1% to 32.19 per dollar. Stocks fell 0.2%.

The border conflict began in late May with an exchange of gunfire in a disputed area that killed a Cambodian soldier. Since then, both countries have massed troops along the frontier and limited land crossings that serve as vital trade routes.

The dispute has also rattled Thailand’s domestic politics. A court has suspended Prime Minister Paetongtarn Shinawatra while it probes allegations of ethical misconduct in handling the border dispute.

Paetongtarn had attempted to defuse tensions in a phone call with former Cambodian leader Hun Sen, but the call was leaked, sparking backlash at home and protests demanding her resignation. She has until July 31 to submit her defense in the court case.

Though Thailand and Cambodia have a long history of border tensions, relations have remained largely stable since the 2011 conflict, which left dozens dead. After the clash in May, Cambodia called for the International Court of Justice in The Hague to help resolve four disputed land areas. Thailand, however, said it does not recognize the court’s jurisdiction in the matter.

Following a landmine incident last week in which a Thai soldier lost his leg, Thailand has initiated a diplomatic campaign targeting Cambodia. Bangkok has briefed foreign military attachés and diplomats stationed in the country and is seeking action under the United Nations’ Anti-Personnel Mine Ban Convention, while also engaging in bilateral efforts to resolve the dispute.

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