On Thursday, North Korea refuted President Trump’s warnings that it would be confronted with fire and fury if its actions threatened the U.S. It has also mapped out detailed plans for a nuclear missile launch near the tiny Pacific Island Of Guam which is a U.S. territory. South Korean analysts said the plans recently revealed by Pyongyang pose a serious threat since Washington might consider any missile targeted around its territory as a grave provocation, even if it is fired as a test.

North Korea’s advanced nuclear technology

North Korea’s rapidly advancing nuclear missile technology and its threat to strike U.S. territories have heightened tension that has transformed into rhetoric and a war of words between the U.S.

and the communist state, creating panic among investors and uncertainty in the assets and commodity markets.

Global stocks dropped for a third day, with shares in the South Korean capital market shrinking to a seven week low, amid Pyongyang’s announcement on Wednesday that it was in the final stage of launching four medium-range ballistic missiles over Japan and the Pacific island of Guam. Guam has a population of about 163,000 people. The tiny island hosts a U.S. Coast Guard Group, a Navy installation, and an airbase. There is the possibility that any missile launched by North Korea could reach Guam.

Final plans to strike

The KCNA news agency reported that the North Korean military would conclude its plans in mid-August, setting the stage for the country’s leader Kim Jong-Un's authorization.

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Though North Korea has made a habit of threatening to destroy the U.S. and its Korean Peninsula allies, the report did not clearly give details of a planned attack -- only that there were two consecutive tests successfully carried out in the month of July by the regime.

Cha Do-hyogn, a researcher at the Asian Institute for Policy Studies in Seoul said even if Pyongyang's nuclear missile does not strike the U.S. territory of Guam, Washington would not accept such an act of provocation because it would be considered a grave threat to its national security.

Threat downplayed by local authorities

Meanwhile, Guam residents remain worried over the development, but Governor Eddie Calvo downplayed the threat and advised residents to go about their normal businesses since the island is strategically important to the U.S. He added that there was no escalated threat from North Korea.