A blast on a canal vital to Kosovo's water and power supplies has sparked a war of words with Serbia, with fears it could further escalate tensions between the two Balkan nations.The explosion late Friday punched a hole in a canal providing water to hundreds of thousands of people and the cooling systems at two coal-fired power plants that generate most of Kosovo's electricity.

By Valentina Dimitrievska in Skopje Eight people have been arrested in connection with what Kosovo police have classified as a terrorist attack on a water channel in northern Kosovo at the end of last week.

Kosovo worked to shore up water and power supplies on Saturday and stepped up security at strategic sites after an explosion hit a canal that sends water to its two main power plants, an incident Pristina labeled a “terrorist act” by neighboring Serbia.