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"Given our consistent opposition to the war and chaos on the peninsula, we totally disapprove of an escalation of the war of words between the USA and North Korea".

Trump says that "we are totally prepared" for a military option, but it's not the preferred one.

Trump spoke at a White House news conference Tuesday.

Donald Trump was quick to respond on his Twitter page, referring to the North Korean leader as "Little Rocket Man". Trump said North Korean problem should be resolved many years ago, "It could have been solved much more easily n, many administrations have wrecked us, but I will deal with this problem and we will see what happens with North Korea".

He says all nations must act now for the denuclearization of North Korea.

Trump's latest orders put the onus on banks and other firms to find out whether their clients have any dealings with North Korea.

The US targeted North Korea's Foreign Trade Bank and the Central Bank of the Democratic People's Republic of Korea as North Korean government agencies.

Branches of China's biggest banks have told AFP that they have suspended financial transactions for North Koreans, a measure that is not required under United Nations sanctions.

The US imposed sanctions on eight North Korean banks and 26 executives on Tuesday, ratcheting up pressure on the country amid increasingly bellicose exchanges with Pyongyang over its nuclear program.

Warning there would be "no winner" in the event of a conflict on the Korean Peninsula, China on Tuesday urged North Korea and the United States to stop their escalating war of words and sit down for talks on cooling the recent spike in tensions.

The North Korea flag flutters next to concertina wire at the North Korean embassy in Kuala Lumpur, Malaysia. The Treasury Department said they are North Koreans acting as representatives of North Korean banks in China, Russia, Libya and the United Arab Emirates.

Yonhap suggested the reclusive North was in fact bolstering its defenses by moving aircraft to its east coast and taking other measures after US bombers flew close to the Korean Peninsula at the weekend. Speaking in South Korea Wednesday, U.S. Lieutenant General Thomas Bergeson said that a joint force with seamlessly integrated air power "is exactly that type of force that is necessary to interdict and then defeat a nuclear-capable enemy".