Thailand's acting prime minister warned Friday that cross-border clashes with Cambodia that have uprooted tens of thousands of people "could develop into war," as the countries traded deadly strikes for a second day.

Acting Prime Minister Phumtham Wechayachai told reporters on Friday that the severity of the clashes was escalating, endangering civilian lives, and that Thailand was committed to defending its territory and sovereignty.

"This situation could potentially develop into a war. At present, it is still considered an armed clash involving heavy weaponry,” Phumtham said.

A steady thump of artillery strikes could be heard from the Cambodian side of the border, where the province of Oddar Meanchey reported one civilian death — a 70-year-old man — and five more wounded.

More than 138,000 people have been evacuated from Thailand's border regions, its health ministry said, reporting 15 fatalities — 14 civilians and a soldier — with a further 46 wounded, including 15 troops.

The Thai army said Cambodian forces "conducted sustained bombardment” using heavy weapons, field artillery and rockets through Friday morning, and that it responded appropriately and advised civilians to avoid the conflict zones. Cambodia’s defense ministry confirmed shelling overnight and claimed to control the site of two disputed temples and another area, according to the Khmer Times. It separately reported 40 workers are trapped at Preah Vihear temple, one of the points of conflict.

People wait in line to get food at a shelter in Thailand's Buriram province on Thursday.
People wait in line to get food at a shelter in Thailand's Buriram province on Thursday. | REUTERS

In the Cambodian town of Samraong, 20 kilometers from the border, journalists saw families speeding away in vehicles with their children and belongings as gunfire erupted.

"I live very close to the border. We are scared because they began shooting again at about 6 a.m.," said Pro Bak, 41.

He was taking his wife and children to a Buddhist temple to seek refuge.

"I don't know when we could return home," he said.

Journalists also saw soldiers rushing to man rocket launchers and speeding off toward the frontier.

The flare-up in clashes on Thursday, which included Thai airstrikes on Cambodian military bases using F-16 fighter jets and Phnom Penh’s attack on civilian areas in Thailand, followed a monthslong border standoff that also pushed Thailand’s ruling coalition to the brink of collapse.

The neighbors share a long history of border tensions, though relations have remained largely stable since a deadly 2011 conflict that left dozens dead. The last major flare-up centered on the Preah Vihear temple, a longstanding flash point dating back to the French colonial era.

Much of the current dispute stems from maps drawn on differing interpretations of early 20th-century Franco-Siamese treaties, which defined the border between Thailand and Cambodia, then part of French Indochina.

A prolonged military conflict would add to multiple economic challenges for both nations, including the U.S. threat to impose stiff tariffs. Unlike neighboring Indonesia, the Philippines and Vietnam — which have secured trade agreements with the administration of U.S. President Donald Trump — export-reliant Thailand has yet to reach a deal.

Given the risks to Thailand’s local economy and tourism, a vital contributor to the economy, Bangkok may have more reasons to end the conflict as soon as possible, said Trinh Nguyen, Natixis senior economist for emerging Asia.

"We expect de-escalation to take place after aggressive actions,” Trinh said. "External risks are rising and Thailand cannot afford to derail already weak tourism and soft growth.”

People flee their homes near the Cambodia-Thailand border in Cambodia's Oddar Meanchey province on Thursday.
People flee their homes near the Cambodia-Thailand border in Cambodia's Oddar Meanchey province on Thursday. | AFP-JIJI

Cambodia’s economic growth was already expected to slow, according to a July 17 report by Maybank Securities, which noted the country’s dependence on the U.S. is the highest in the Association of Southeast Asian Nations, at 38% of nominal exports or 21% of gross domestic product.

The country also has more than half a million workers in Thailand, according to official estimates, though Maybank said undocumented migrants could push that number closer to 1.2 million people. Officials in Thailand’s Chanthaburi and Trat provinces said some 2,000 Cambodian migrant workers have gathered at a checkpoint to return home.

Thai exports to Cambodia totaled $5.1 billion in the first half of 2025, including jewelry, oil and sugar, with $732 million of imports, mostly fruit and vegetables, according to the Thai Commerce Ministry.

The clashes have adversely affected economic confidence and disrupted trade and investment between the two countries, the Thai Chamber of Commerce said in a statement on Thursday.

Cambodia has closed 260 schools in the province of Oddar Meanchey, the center of the conflict, the Khmer Times reported.

The fighting has drawn condemnation from world leaders, with the U.S. saying it is gravely concerned.

"The United States urges an immediate cessation of hostilities, protection of civilians, and a peaceful resolution of the conflict,” State Department deputy spokesman Tommy Pigott told reporters in Washington on Thursday.

The European Union and China — a close ally of Phnom Penh — said they were "deeply concerned" about the clashes, calling for dialogue.

While Thailand has ruled out bilateral talks and signaled no immediate plan to cease the military actions, a drawn-out conflict poses fresh challenges to leader Paetongtarn Shinawatra, who had already been suspended as prime minister for her handling of the border dispute. Her Pheu Thai-led coalition has been on the brink after the defection of a key party last month left it with a slender majority.

Thai nationalist groups, who had initially planned an anti-government rally for Sunday, have pushed it back to Aug. 2. Posts supporting the Thai army and air force are trending on social media platforms X and Facebook in Thailand.

Malaysian Prime Minister Anwar Ibrahim, whose country currently holds the chair of regional bloc ASEAN, said he held talks with both countries' leaders on Thursday and called for a ceasefire and dialogue.

"I welcome the positive signals and willingness shown by both Bangkok and Phnom Penh to consider this path forward," he said in a Facebook post late on Thursday.

But despite Anwar's optimism, fighting resumed in three areas around 4 a.m. on Friday, the Thai army said.

Cambodian forces carried out bombardments with heavy weapons, field artillery, and BM-21 rocket systems, the army said, and Thai troops responded "with appropriate supporting fire."

Thursday's clashes came hours after Thailand expelled the Cambodian ambassador and recalled its own envoy after five members of a Thai military patrol were wounded by a land mine.

Cambodia downgraded ties to "the lowest level" on Thursday, pulling out all but one of its diplomats and expelling their Thai equivalents from Phnom Penh.