India-U.S. diplomatic spat escalates

Jan 08, 2014, 2:32 PM EST

India has moved to ban all commercial activities at the U.S. embassy in New Delhi, in the newest retaliatory move since the U.S. arrested an Indian diplomat in New York last month. The escalation of the diplomatic row reveals India's continued fury over the detention of Devyani Khobragade, who is accused of lying on a visa application and underpaying her nanny, and constitutes the greatest threat to ties between the two countries since the late 1990's.