Bangladesh, July 25 -- A long-standing territorial dispute between Thailand and Cambodia has flared into one of Southeast Asias most dangerous military escalations in years, with both sides trading deadly strikes across the contested border and warning of the possibility of all-out war.

Thailands acting Prime Minister Phumtham Wechayachai sounded the alarm in a press briefing from Bangkok this week, warning that the ongoing clashes “could escalate into full-scale war” if not promptly addressed through diplomacy. The violence, which erupted anew on July 25, has already resulted in the deaths of over a dozen civilians, including the revered abbot of a centuries-old temple on the Cambodian side of the border.

The fighting cente...