Thailand and Cambodia may hold talks as soon as Sunday to bring an end to their deadly border clashes after US President Donald Trump warned Washington wouldn’t make a trade deal with either country while the conflict continued.

Fresh cross-border clashes between Thailand and Cambodia broke out on Sunday hours after US President Donald Trump announced the two Southeast Asian nations had agreed to ceasefire talks.

The fighting between Thailand’s and Cambodia’s militaries has continued for a second day in a row, with the clash progressively escalating in a border battle that has killed at least 16

Cambodia is seeking to "internationalise the issue to serve its own political objectives", Thailand’s ambassador to the United Nations Cherdchai Chaivaivid told a closed-door UN Security Council meeting.

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

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.

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.

The Royal Thai Embassy in Phnom Penh assesses that the situation will intensify, with a growing likelihood that the conflict may prolong and expand further.