N.Korea says considering strike on Guam after Trump warns of 'fire and fury"

SEOUL/BEDMINSTER, N.J., Aug 9 (Reuters) - North Korea said on Wednesday it is considering plans for a missile strike on the U.S. Pacific territory of Guam, just hours after President Donald Trump told the North that any threat to the United States would be met with "fire and fury."

The ratcheting up in tensions rattled global financial markets and prompted warnings from U.S. officials and analysts not to engage in rhetorical slanging matches with North Korea.

Pyongyang said it was "carefully examining" a plan to strike Guam, an island of around 162,000 in the western Pacific and the site of a U.S. military base that hosts a submarine squadron, an airbase and a Coast Guard group.

A Korean People's Army (KPA) spokesman, in a statement carried by state-run KCNA news agency, said the plan would be put into practice at any moment once leader Kim Jong Un makes a decision.

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North Korea's Missiles
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North Korea's Missiles
The scene of the intermediate-range ballistic missile Pukguksong-2's launch test in this undated photo released by North Korea's Korean Central News Agency (KCNA) May 22, 2017. KCNA/via REUTERS ATTENTION EDITORS - THIS IMAGE WAS PROVIDED BY A THIRD PARTY. EDITORIAL USE ONLY. REUTERS IS UNABLE TO INDEPENDENTLY VERIFY THIS IMAGE. NO THIRD PARTY SALES. SOUTH KOREA OUT.
The long-range strategic ballistic rocket Hwasong-12 (Mars-12) is launched during a test in this undated photo released by North Korea's Korean Central News Agency (KCNA) on May 15, 2017. KCNA via REUTERS REUTERS ATTENTION EDITORS - THIS IMAGE WAS PROVIDED BY A THIRD PARTY. EDITORIAL USE ONLY. REUTERS IS UNABLE TO INDEPENDENTLY VERIFY THIS IMAGE. NO THIRD PARTY SALES. SOUTH KOREA OUT.
Missiles are driven past the stand with North Korean leader Kim Jong Un and other high ranking officials during a military parade marking the 105th birth anniversary of North Korea's founding father, Kim Il Sung, in Pyongyang, April 15, 2017. REUTERS/Sue-Lin Wong
North Korean leader Kim Jong Un inspects the long-range strategic ballistic rocket Hwasong-12 (Mars-12) in this undated photo released by North Korea's Korean Central News Agency (KCNA) on May 15, 2017. KCNA via REUTERS REUTERS ATTENTION EDITORS - THIS IMAGE WAS PROVIDED BY A THIRD PARTY. EDITORIAL USE ONLY. REUTERS IS UNABLE TO INDEPENDENTLY VERIFY THIS IMAGE. NO THIRD PARTY SALES. SOUTH KOREA OUT. TPX IMAGES OF THE DAY
People cheer as a missile is driven past the stand with North Korean leader Kim Jong Un and other high ranking officials during a military parade marking the 105th birth anniversary of country's founding father Kim Il Sung, in Pyongyang April 15, 2017. REUTERS/Damir Sagolj
Military vehicles carry missiles with characters reading 'Pukkuksong' during a military parade marking the 105th birth anniversary of country's founding father, Kim Il Sung in Pyongyang, April 15, 2017. REUTERS/Damir Sagolj TPX IMAGES OF THE DAY
North Korean leader Kim Jong Un supervised a ballistic rocket launching drill of Hwasong artillery units of the Strategic Force of the KPA on the spot in this undated photo released by North Korea's Korean Central News Agency (KCNA) in Pyongyang March 7, 2017. KCNA/via REUTERSATTENTION EDITORS - THIS PICTURE WAS PROVIDED BY A THIRD PARTY. REUTERS IS UNABLE TO INDEPENDENTLY VERIFY THE AUTHENTICITY, CONTENT, LOCATION OR DATE OF THIS IMAGE. FOR EDITORIAL USE ONLY. NOT FOR SALE FOR MARKETING OR ADVERTISING CAMPAIGNS. NO THIRD PARTY SALES. NOT FOR USE BY REUTERS THIRD PARTY DISTRIBUTORS. SOUTH KOREA OUT. NO COMMERCIAL OR EDITORIAL SALES IN SOUTH KOREA. TPX IMAGES OF THE DAY
A fire drill of ballistic rockets by Hwasong artillery units of the KPA Strategic Force is pictured in this undated photo released by North Korea's Korean Central News Agency (KCNA) in Pyongyang September 6, 2016. KCNA/via Reuters ATTENTION EDITORS - THIS PICTURE WAS PROVIDED BY A THIRD PARTY. REUTERS IS UNABLE TO INDEPENDENTLY VERIFY THE AUTHENTICITY, CONTENT, LOCATION OR DATE OF THIS IMAGE. FOR EDITORIAL USE ONLY. NO THIRD PARTY SALES. SOUTH KOREA OUT. THIS PICTURE IS DISTRIBUTED EXACTLY AS RECEIVED BY REUTERS, AS A SERVICE TO CLIENTS.
FILE PHOTO - An underwater test-firing of a strategic submarine ballistic missile is seen in this undated photo released by North Korea's Korean Central News Agency (KCNA) in Pyongyang on April 24, 2016. KCNA/File Photo via REUTERS. ATTENTION EDITORS - THIS IMAGE WAS PROVIDED BY A THIRD PARTY. EDITORIAL USE ONLY. REUTERS IS UNABLE TO INDEPENDENTLY VERIFY THIS IMAGE. SOUTH KOREA OUT.
A view of a firing contest among multiple launch rocket system (MLRS) batteries selected from large combined units of the KPA, in this undated photo released by North Korea's Korean Central News Agency (KCNA) in Pyongyang on December 21, 2016. KCNA/via Reuters ATTENTION EDITORS - THIS PICTURE WAS PROVIDED BY A THIRD PARTY. REUTERS IS UNABLE TO INDEPENDENTLY VERIFY THE AUTHENTICITY, CONTENT, LOCATION OR DATE OF THIS IMAGE. FOR EDITORIAL USE ONLY. NO THIRD PARTY SALES. SOUTH KOREA OUT. THIS PICTURE IS DISTRIBUTED EXACTLY AS RECEIVED BY REUTERS, AS A SERVICE TO CLIENTS.
Ballistic rocket is seen launching during a drill by the Hwasong artillery units of the KPA Strategic Force in this undated picture provided by KCNA in Pyongyang on July 21, 2016. KCNA/via ReutersATTENTION EDITORS - THIS IMAGE WAS PROVIDED BY A THIRD PARTY. EDITORIAL USE ONLY. REUTERS IS UNABLE TO INDEPENDENTLY VERIFY THIS IMAGE. SOUTH KOREA OUT. NO THIRD PARTY SALES. NOT FOR USE BY REUTERS THIRD PARTY DISTRIBUTORS.Ã TPX IMAGES OF THE DAY
A test launch of ground-to-ground medium long-range ballistic rocket Hwasong-10 in this undated photo released by North Korea's Korean Central News Agency (KCNA) on June 23, 2016. REUTERS/KCNA ATTENTION EDITORS - THIS PICTURE WAS PROVIDED BY A THIRD PARTY. REUTERS IS UNABLE TO INDEPENDENTLY VERIFY THE AUTHENTICITY, CONTENT, LOCATION OR DATE OF THIS IMAGE. FOR EDITORIAL USE ONLY. NOT FOR SALE FOR MARKETING OR ADVERTISING CAMPAIGNS. NO THIRD PARTY SALES. NOT FOR USE BY REUTERS THIRD PARTY DISTRIBUTORS. SOUTH KOREA OUT. NO COMMERCIAL OR EDITORIAL SALES IN SOUTH KOREA. THIS PICTURE IS DISTRIBUTED EXACTLY AS RECEIVED BY REUTERS, AS A SERVICE TO CLIENTS. TPX IMAGES OF THE DAY
A new multiple launch rocket system is test fired in this undated photo released by North Korea's Korean Central News Agency (KCNA) in Pyongyang March 4, 2016. REUTERS/KCNA ATTENTION EDITORS - THIS PICTURE WAS PROVIDED BY A THIRD PARTY. REUTERS IS UNABLE TO INDEPENDENTLY VERIFY THE AUTHENTICITY, CONTENT, LOCATION OR DATE OF THIS IMAGE. FOR EDITORIAL USE ONLY. NOT FOR SALE FOR MARKETING OR ADVERTISING CAMPAIGNS. THIS PICTURE IS DISTRIBUTED EXACTLY AS RECEIVED BY REUTERS, AS A SERVICE TO CLIENTS. NO THIRD PARTY SALES. SOUTH KOREA OUT. NO COMMERCIAL OR EDITORIAL SALES IN SOUTH KOREA
A rocket is launched during a demonstration of a new large-caliber multiple rocket launching system attended by North Korean leader Kim Jong Un (not pictured) at an unknown location, in this undated file photo released by North Korea's Korean Central News Agency (KCNA) on March 22, 2016. REUTERS/KCNA/Files ATTENTION EDITORS - THIS PICTURE WAS PROVIDED BY A THIRD PARTY. REUTERS IS UNABLE TO INDEPENDENTLY VERIFY THE AUTHENTICITY, CONTENT, LOCATION OR DATE OF THIS IMAGE. FOR EDITORIAL USE ONLY. NOT FOR SALE FOR MARKETING OR ADVERTISING CAMPAIGNS. NO THIRD PARTY SALES. SOUTH KOREA OUT. NO COMMERCIAL OR EDITORIAL SALES IN SOUTH KOREA. THIS PICTURE IS DISTRIBUTED EXACTLY AS RECEIVED BY REUTERS, AS A SERVICE TO CLIENTS. TPX IMAGES OF THE DAY
A rocket is fired during a drill by anti-aircraft units of the Korean People's Army (KPA) in this undated photo released by North Korea's Korean Central News Agency (KCNA) in Pyongyang November 3, 2015. REUTERS/KCNA ATTENTION EDITORS - THIS PICTURE WAS PROVIDED BY A THIRD PARTY. REUTERS IS UNABLE TO INDEPENDENTLY VERIFY THE AUTHENTICITY, CONTENT, LOCATION OR DATE OF THIS IMAGE. FOR EDITORIAL USE ONLY. NOT FOR SALE FOR MARKETING OR ADVERTISING CAMPAIGNS. THIS PICTURE IS DISTRIBUTED EXACTLY AS RECEIVED BY REUTERS, AS A SERVICE TO CLIENTS. NO THIRD PARTY SALES. SOUTH KOREA OUT. NO COMMERCIAL OR EDITORIAL SALES IN SOUTH KOREA.
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In another statement citing a different military spokesman, North Korea also accused the United States of devising a "preventive war" and said any plans to execute this would be met with an "all-out war wiping out all the strongholds of enemies, including the U.S. mainland."

Washington has warned it is ready to use force if need be to stop North Korea's ballistic missile and nuclear programs but that it prefers global diplomatic action, including sanctions.

Speaking to reporters in New Jersey on Tuesday, Trump issued his strongest warning yet for North Korea.

"North Korea best not make any more threats to the United States. They will be met with fire and fury like the world has never seen," Trump said.

The U.N. Security Council unanimously imposed new sanctions on North Korea on Saturday over its continued missile tests, that could slash the reclusive country's $3 billion annual export revenue by a third.

North Korea has made no secret of plans to develop a nuclear-tipped missile able to strike the United States and has ignored international calls to halt its nuclear and missile programs.

It says its intercontinental ballistic missiles (ICBMs) are a legitimate means of defense against perceived U.S. hostility. It has long accused the United States and South Korea of escalating tensions by conducting military drills.

U.S. stocks closed slightly lower after Trump's comment and S&P stock futures (ESc1) slipped further in Asian trade, while a widely followed measure of stock market anxiety ended at its highest in nearly a month.

The U.S. dollar index edged down and the safe-haven yen strengthened against the U.S. currency after North Korea's response. Asia stocks dipped, with South Korea's benchmark index and Japan's Nikkei both falling 0.5 percent.

TENSIONS RISE

The United States has remained technically at war with North Korea since the 1950-53 Korean conflict ended in an armistice rather than a peace treaty.

Tensions have risen since North Korea carried out two nuclear bomb tests last year and two ICBM tests last month.

On Monday, two U.S. B-1 bombers flew from Guam over the Korean Peninsula as a part of its "continuous bomber presence," a U.S. official said, in a sign of the strategic importance Guam holds.

The alert status at Andersen Airforce Base on Guam had not been changed as of Wednesday morning, according to the duty officer at the base's public affairs office.

Republican U.S. Senator John McCain said Trump should tread cautiously when issuing threats to North Korea unless he is prepared to act.

"I take exception to the president's comments because you got to be sure you can do what you say you're going to do," he said in a radio interview.

The Washington Post reported on Tuesday that North Korea has successfully produced a miniaturized nuclear warhead that can fit inside its missiles, according to a confidential U.S. intelligence assessment.

But U.S. intelligence officials told Reuters that while North Korea has accelerated its efforts to design an ICBM, a miniaturized nuclear warhead, and a nosecone robust enough to survive reentry through the Earth's atmosphere, there is no reliable evidence it has mastered all three, much less tested and combined them into a weapon capable of hitting targets in the United States.

North Korea's ICBM tests last month suggested it was making technical progress, Japan's annual Defence White Paper warned.

9 PHOTOS
A look at North Korea's July 2017 missile test
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A look at North Korea's July 2017 missile test
North Korean leader Kim Jong Un guides the second test-fire of intercontinental ballistic missile (ICBM) Hwasong-14 in this undated picture provided by KCNA in Pyongyang on July 29, 2017. KCNA via Reuters ATTENTION EDITORS - THIS IMAGE WAS PROVIDED BY A THIRD PARTY. REUTERS IS UNABLE TO INDEPENDENTLY VERIFY THIS IMAGE. SOUTH KOREA OUT. NO THIRD PARTY SALES. NOT FOR USE BY REUTERS THIRD PARTY DISTRIBUTORS.� TPX IMAGES OF THE DAY
Intercontinental ballistic missile (ICBM) Hwasong-14 is pictured during its second test-fire in this undated picture provided by KCNA in Pyongyang on July 29, 2017. KCNA via Reuters ATTENTION EDITORS - THIS IMAGE WAS PROVIDED BY A THIRD PARTY. REUTERS IS UNABLE TO INDEPENDENTLY VERIFY THIS IMAGE. SOUTH KOREA OUT. NO THIRD PARTY SALES. NOT FOR USE BY REUTERS THIRD PARTY DISTRIBUTORS.� TPX IMAGES OF THE DAY
People watch news report showing North Korea's Hwasong-14 missile launch on electronic screen at Pyongyang station, North Korea in this photo taken by Kyodo on July 29, 2017. Mandatory credit Kyodo/via REUTERS ATTENTION EDITORS - THIS IMAGE WAS PROVIDED BY A THIRD PARTY. MANDATORY CREDIT. JAPAN OUT. NO COMMERCIAL OR EDITORIAL SALES IN JAPAN.
The Central Committee and the Central Military Commission of the Workers' Party of Korea hold a banquet at the Mokran House in celebration of the second successful test-fire of intercontinental ballistic missiles (ICBM) Hwasong-14, in this undated picture provided by KCNA in Pyongyang on July 30, 2017. KCNA/via Reuters ATTENTION EDITORS - THIS IMAGE WAS PROVIDED BY A THIRD PARTY. REUTERS IS UNABLE TO INDEPENDENTLY VERIFY THIS IMAGE. SOUTH KOREA OUT. NO THIRD PARTY SALES. NOT FOR USE BY REUTERS THIRD PARTY DISTRIBUTORS.
The Central Committee and the Central Military Commission of the Workers' Party of Korea hold a banquet at the Mokran House in celebration of the second successful test-fire of intercontinental ballistic missiles (ICBM) Hwasong-14, in this undated picture provided by KCNA in Pyongyang on July 30, 2017. KCNA/via Reuters ATTENTION EDITORS - THIS IMAGE WAS PROVIDED BY A THIRD PARTY. REUTERS IS UNABLE TO INDEPENDENTLY VERIFY THIS IMAGE. SOUTH KOREA OUT. NO THIRD PARTY SALES. NOT FOR USE BY REUTERS THIRD PARTY DISTRIBUTORS.
Coverage of an ICBM missile test is displayed on a screen in a public square in Pyongyang on July 29, 2017. Kim Jong-Un boasted of North Korea's ability to strike any target in the US after a second ICBM test that weapons experts said on July 29 could even bring New York into range - in a potent challenge to President Donald Trump. / AFP PHOTO / Kim Won-Jin (Photo credit should read KIM WON-JIN/AFP/Getty Images)
A man and woman watch coverage of an ICBM missile test displayed on a screen in a public square in Pyongyang on July 29, 2017. Kim Jong-Un boasted of North Korea's ability to strike any target in the US after a second ICBM test that weapons experts said on July 29 could even bring New York into range - in a potent challenge to President Donald Trump. / AFP PHOTO / Kim Won-Jin (Photo credit should read KIM WON-JIN/AFP/Getty Images)
In this photo taken on July 29, 2017, a woman holding a mock rifle stands at a bus stop in Pyongyang. North Korea said July 30 its latest ICBM test was a 'warning' targeting the US for its efforts to slap new sanctions on Pyongyang and threatened a counter-strike if provoked militarily by Washington. / AFP PHOTO / Ed JONES (Photo credit should read ED JONES/AFP/Getty Images)
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WAR OF WORDS

Former U.S. diplomat Douglas Paal, now with the Carnegie Endowment for International Peace think tank in Washington, said Trump should not get into a war of words with Pyongyang.

"It strikes me as an amateurish reflection of a belief that we should give as we get rhetorically. That might be satisfying at one level, but it takes us down into the mud that we should let Pyongyang enjoy alone," said Paal, who served as a White House official under previous Republican administrations.

Lockheed Martin Corp, the Pentagon's No. 1 weapons supplier, said on Tuesday its customers are increasingly asking about missile defense systems. (Additional reporting by Soyoung Kim in Seoul, Kiyoshi Takenaka in Tokyo, Doina Chiacu, Susan Heavey, John Walcott, Idrees Ali and David Brunnstrom in Washington, Rodrigo Campos in New York; Writing by Lincoln Feast)

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