In response to recent Indian air strikes against Pakistani positions, Pakistan downed two Indian MiGs today in a dramatic escalation of the conflict. The Indian Air Force conducted air strikes yesterday against what it called a 'terrorist training camp' in Pakistan after a suicide bomb in Indian-controlled Kashmir which killed 40 Indian paramilitary police, reported Reuters.

Ground fire has flared between the two nuclear-armed belligerents along the border as well.

The Indian attack targeted the Jaish-e-Mohammed (JeM), the group that claimed credit for the suicide attack. India said a large number of JeM fighters had been killed, but Pakistani officials said the strike was a failure and inflicted no casualties, wrote Reuters.

“This was not a retaliation in true sense, but to tell Pakistan has capability, we can do it, but we want to be responsible, we don’t want an escalation, we don’t want a war,” Major General Asif Ghafoor told a news conference, describing the downing of the Indian MiGs.

European markets softened across the board, possibly on the news.