North Korea has outlined plans to launch a missile strike near the U.S. Island of Guam in the coming days.

The country said its army will be ready to carry out plans to fire four intermediate-range missiles over Japan to land 30-40 km (18-25 miles) from Guam, a U.S. military base in the Pacific, in mid-August.

North Korea also brushed off remarks by U.S. President Donald Trump warning that he would retaliate to any escalation of tensions with “fire and fury”.

“Sound dialogue is not possible with such a guy bereft of reason and only absolute force can work on him,” North Korean state media reported.

The UN Security Council unanimously agreed to impose tough new sanctions on North Korea over the weekend, prompting Pyongyang to promise “thousands-fold” revenge against the U.S., which it also accused of a “heinous” plot to “isolate and stifle” the country.

Global concerns about the heightened tensions between the U.S. and North Korea drove the Vix, which measures market volatility, to its highest in over a month yesterday.