If the North Korean State Media are to be believed, this weekend saw the 6th and most powerful nuclear detonation in North Korea. This time a hydrogen bomb. How much of what comes out of the NKSM can believed is a moot point, but it tallies with seismological data indicating an earthquake in the region of the alleged test.
The Trump administration's reaction hasn't exactly been conciliatory with talk of a 'massive military response'. This comes after Trump's 'fire and fury' comments a few weeks ago.
Today President Putin, quite sensibly, has warned against 'military hysteria' and pushed for dialogue.
This is all scary stuff and with Kim Jong Un seemingly intent on testing Donald Trump's military twitchiness, aside from nuclear apocalypse, what do these geopolitical tensions mean for the investment markets?
Well, given that we are potentially on the verge of nuclear armageddon, the markets have been rather muted. Is this the markets acting rationally by concluding that nothing is actually going to happen, this is all a storm in a tea-cup, political posturing, sabre ratting etc., or are we all just being a little too blase?
Yesterday, South Korea's KOSPI index fell 1.2% after falling a maximum of just over 2% intra-day. Today's move was ever so slightly down. Asian markets followed suit to a lesser extent and the FTSE 100 and S&P 500 were also soft. Certainly not panic stations just yet.
The Korean won had its biggest fall against the dollar since March, but is still on track for its biggest gain since 2012 and the bond market, perhaps the best indicator of global risk aversion, was little moved. In fact, today, yields were rising as the focus has moved towards Thursday's European Central Bank meeting and the potential for some sort of withdrawal from their quantitative easing programme.
Gold, with its safe-haven status, has perhaps seen the most noticeable move, nudging up 1% to an 11 month high.
So currently, everything is being taken in its stride by the investment markets when it comes to North Korea, however if the situation escalates, expect to see more pronounced moves in the investment markets and a flock to safe haven assets. For the time being however, it's business as usual.
Russian President Vladimir Putin warned that the escalating crisis over North Korea's weapons program risks developing into a "global catastrophe" with mass casualties. But Putin, speaking in China on Tuesday, cautioned against "military hysteria" and said that the only way to resolve the crisis was through diplomacy.