Border markets are on the brink of collapse as Thailand closed all crossings to Cambodia due to a bitter territorial clash.

Dozens of shops in Trat province which rely on trade from workers continually passing through have shut down amid a sharp decline after the Thai military sealed the border.

The usually bustling Trat-Khlong Yai route was eerily empty as cross-border travel was banned to tourists and traders alike.

A Cambodian souvenir shop owner, 50, who works at the Ban Hat Lek Border Market, said: 'I have been selling souvenirs here for a long time, but ever since tensions started, the number of tourists has been dropping steadily until the Thai government finally shut the border. Today, I haven't had a single customer. I have no income, but I still have to cover expenses like school fees for my children and daily living costs.

'I'm a Cambodian married to a Thai, and people on both sides have always lived peacefully together. I just hope both governments can negotiate a solution as soon as possible.'

The border closures followed a series of retaliatory bans enforced by both sides in recent weeks. Cambodia has banned fuel, gas, and agricultural imports, and cut internet bandwidth from Thailand.

Thailand has responded by imposing stricter border controls, blocking almost all travellers from crossing into Cambodia and stifling its neighbour's lucrative border casinos. Only students and emergency patiets were allowed to pass the border.

Tensions between Thailand and Cambodia escalated after a clash between troops from both countries in a disputed area in Nam Yuen district, Ubon Ratchathani, on May 28, resulting in the death of a Cambodian sergeant.

Thailand expressed its intention to resolve the dispute through existing bilateral mechanisms.

However, Cambodia vowed to take the case before the International Court of Justice in The Hague.

Former Cambodian Prime Minister Hun Sen and current Prime Minister Hun Manet claimed that the disputed area belongs to Cambodia.

But Thailand maintained that the area is a no-man's land within an un-demarcated zone.