North Korea has ramped up their threat to the United States and in his New Year’s address, Kim Jong-un warned that a “nuclear button is always on my desk”.
The United Nations imposed fresh sanctions on the hermit kingdom last month in a bid to halt the dictator’s nuclear programme.
World War 3 fears were heightened after it was claimed that Russia and China were both supplying the state with fuel, despite the sanctions.
David Roche, president and global strategist at Independent Strategy claimed that the crisis could spark a new cold war.
He told CNBC: “One of these two outcomes is pretty likely so what comes out of that is all sorts of things: trade complications, cold wars et cetera.
“And that, I think, would be a major geopolitical forecast I would make for this year.”
President Donald Trump has repeatedly called for China and Russia to do more in a bid to apply pressure to Kim Jong-un.
After it was revealed that China were still allowing oil to enter the rogue state, Mr Trump tweeted: “Caught RED HANDED – very disappointed that China is allowing oil to go into North Korea.
East Asia expert Gordon Chang said Beijing had already signalled it would side with Pyongyang in a conflict despite pledging to help defuse tension with North Korea and the international community.
Mr Chang said: “I think you need to have an honest conversation with the American people.
“That honest conversation has to take into account that we could end up in a war not only with North Korea but with its big-power sponsor China, and maybe even Russia.
“There will never be a friendly solution to the North Korea problem if this continues to happen!”
Last year North Korea tested three intercontinental ballistic missiles and its sixth nuclear test.
After its latest ICBM test Kim Jong-un claimed their rockets were now capable of reaching “all the US mainland”.
The United Nations Security Council imposed tough new sanctions on North Korea after its continued missile testing. The resolution seeks to ban nearly 90 percent of refined petroleum product exports to North Korea.
The resolution also bans exports of industrial equipment, machinery, transportation vehicles and industrial metals to North Korea.
The North Korea foreign ministry responded to the UN sanctions and branded them an “act of war”.