North Korea conducted an underground nuclear explosive test on October 16, 2006. The estimated yield of the test was less than one kiloton. In a roundtable discussion with the United States and China in Beijing on April 24, 2003, North Korean officials admitted for the first time that they possessed nuclear weapons. Furthermore, North Korean officials claim to have reprocessed spent fuel rods and have threatened to begin exporting nuclear materials unless the United States agrees to one-on-one talks with North Korea. Tensions between the United States and North Korea have been running especially high since, in early October of 2002, Assistant Secretary of State James Kelly informed North Korean officials that the United States was aware that North Korea had a program underway to enrich uranium for use in nuclear weapons. Initially North Korea denied this, but later confirmed the veracity of the US claim. In confirming that they had an active nuclear weapons program, they also declared the Agreed Framework nullified.

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U.S. intelligence agencies have confirmed that a test has occurred, but are presently looking into the situation. Tony Snow, President George W. Bush’s White House Press Secretary, said that the United States would now go to the United Nations to determine “what our next steps should be in response to this very serious step.” On Monday, October 9, 2006, President Bush stated in a televised speech that such a claim of a test is a ""provocative act"" and U.S condemns such acts. President Bush stated that the United States is ""committed to diplomacy"" but will ""continue to protect [America] and [America's] interests."" <
br/> On February 13, 2007, the third phase of the fifth round of the sixth party talks produced an agreement among the six parties. In exchange for substantial fuel aid, North Korea agreed to shut down the Yongbyon nuclear facility. The United States also agreed to begin discussions on normalization of relations with North Korea, and to begin the process of removing North Korea from its list of state sponsors of terrorism. Implementation of this agreement has been successful so far, with US Chief Negotiator Christopher Hill saying North Korea has adhered to its commitments. The sixth round of talks commencing on March 19, 2007, will discuss the future of the North Korean nuclear weapons program. The US, to reciprocate the goodwill of their North Korean counterparts, agreed to unfreeze all of North Korea's assets in Banco Delta Asia on this day too.

On November 4, 2007, a North Korean merchant vessel was attacked by Somalian pirates off the coast of Mogadishu who forced their way aboard, posing as guards; As U.S. Navy ships patrolling the waters moved to respond, the 22 North Korean seamen fought the eight Somali pirates in hand-to-hand combat. With aid from the crew of the U.S.S. James E. Williams and a helicopter, the ship was freed, and permission was given to the U.S. crew to treat the medically wounded crew and pirates. This resulted in favorable comments from U.S. envoy in Beijing, Christopher Hill, as well as an exceedingly rare pro-U.S. statement in the North Korean press. The favorable result of the incident occurred at an important moment, as the North Koreans moved to implement the February 13 agreement with the acquiescence of the Bush administration, and the December 19, 2007 elections loom in South Korea, with the North Koreans taking pains to emphasize a more moderate policy.

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