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"North Korea's military has reportedly been ordered to prepare for combat after Seoul blamed the country for sinking one of its warships." (Russia Today)

The communist North is now accusing its Southern counterpart of entering its waters and has severed all ties with Seoul, increasing already hostile tensions on the Korean peninsula.

"Should the South's side's intrusions into the territorial waters of our side continue, North Korea will put into force practical military measures to defend its waters, as it had already clarified, and the South's side will be held accountable for all the ensuing consequences." (ITN)

South Korea has suspended all trade with the North, and has turned its propaganda-emitting loudspeakers on the border back on. North Korea is making plans to do the same.

In South Korea's JoongAng Daily, one writer says this escalating hostility could contribute to a downward spiral.

"Relations may return to the long chill before the summit meeting between [former President] Kim Dae-jung and Kim Jong-il in June 2000. But such a drastic turn is nevertheless necessary to stop ourselves from being manipulated by the North."

Yet in the midst of the increasing hostility, political science professor Han Park, tells CNN this is prime time for dialogue between the countries.

GUEST: "It's so important that if we want to dialogue, that this is the ideal time that we should talk to them."

 ANCHOR: "So this is a real test, if as Ban Ki Moon has said, you want to address the urgency of the situation on the Korea peninsula, this is the perfect time to open up the doors and have a discussion instead of just hurling insults."

GUEST: "Absolutely, insult will not, as I said, produce any consequences."

But one ITN reporter says it's unclear what the outcome of these tensions will be.

ITN REPORTER: "It remains to be seen whether is yet more posturing in a stand-off that has lasted more than a half a century, or a sign that the region is finally sliding towards war."

So is this just a flexing of muscles between North and South Korea? Or could the neighbors be aggravating a more serious conflict?

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WRITER: Kyrsten Skulborstad