You admit you broke the treaty, and therefore we acted accordingly. If you retaliate then this 'war' will go as far as you wish to take it, even if it means no staves in either city as the outcome.
As for the staves in the Artisans guild, this was also your fault. Being the guildmaster of the guild, your actions were taken as the guilds action as a whole. Step down as Prince of Mercinae and as guildmaster of the Artisans or post a public apology to Thakria and the hostilities will cease.
As for Khalin, if i hear of any harm to him because of this, your remaining time in this world will become more sour and painful than Saxe and myself seem to be making it at the moment.