Signed in 1960, the important agreement between India and Pakistan controlling the usage of water from the Indus River system is the Indus Waters Treaty (IWT). Assigning authority to each nation, the treaty separates the rivers into Eastern and Western divisions. Notwithstanding political conflicts, the treaty has mainly kept calm over water allocation. But India suspended the treaty in response to the 2025 Pahalgam terror assault, so aggravating bilateral tensions. This paper investigates the relevance of the treaty, the effects of its suspension, and the issues regarding water security, so stressing the difficulties of preserving peace within geopolitical conflicts.