"Make no mistake. North Korea's launch of an ICBM is clear and sharp military escalation. The North Korean regime openly states that its missiles are intended to deliver nuclear weapons to strike cities in the United States, South Korea and Japan, and now has greater capacity to do so," Amb. Nikki Haley said during a UN Security Council meeting.

"Their actions are quickly closing off the possibility of a diplomatic solution. The United States is prepared to use the full range of our capabilities to defend ourselves and our allies. One of our capabilities lies with our considerable military forces. We will use them if we must. But we prefer not to have to go in that direction," she said.

Haley also warned that countries should choose whether to do business with the North or the US "There are countries that are allowing, even encouraging trade with North Korea in violation of UN Security Council resolutions. Such countries would also like to continue their trade arrangements with the United States. That's not going to happen," she said.

Haley also said the US will propose a new Security Council sanctions resolution against the North.

"If we're unified, the international community can cut off major sources of hard currency to the North Korean regime," she said. "We can restrict the flow of oil to their military and their weapons program. We can increase air and maritime restrictions. We can hold senior regime officials accountable."

Haley acknowledged that there have been numerous UN sanctions against the North, but they have been insufficient to get the North to change its course. So in order to have an impact, in order to move North Korea off its military escalation, Haley said that the world must do more.

"We will not look exclusively at North Korea. We will look at any country that chooses to do business with this outlaw regime. We will not have patience for stalling or talking our way down to a watered down resolution," she said.

"Time is short. Action is required. The world is on notice. If we act together, we can still prevent a catastrophe and we can rid the world of a grave threat. If we fail to act in a serious way, there will be a different response," she added.

Haley also took a swipe at China, saying Beijing has much of the burden of enforcing UN sanctions.

"Ninety percent of trade with North Korea is from China. We will work with China. We will work with any and every country that believes in peace. But we will not repeat the inadequate approaches of the past that have brought us to this dark day," she said.

Other countries also strongly condemned the North's ICBM test, with France's ambassador calling it "a grave and unjustifiable violation" and Britain's envoy denouncing the launch as a "flagrant violation of unanimous decisions of the Security Council."

China and Russia also denounced the North's test, but also raised clear objections to military options.

"The possibility of taking military measures to resolve the problems of the Korean Peninsula should be excluded," Russia's deputy UN ambassador, Vladimir Safronkov, said. He also said that it is equally unacceptable to "economically strangle North Korea."

Safronkov also urged the US and South Korea to "halt and cancel" immediately the deployment of the THAAD missile defense system. He even claimed that the North's missile was not an ICBM, but a mid-range ballistic missile.

Chinese Ambassador Liu Jieyi echoed the Russian envoy's argument.

"China has always been firmly opposed to chaos and conflict on the peninsula. Military means must not be an option in this regard.

The deployment of the THAAD anti-missile system in Northeast Asia seriously undermines the strategic and security interests of regional countries, including China," he said.

He also urged the US and the South to cancel the deployment immediately.

Haley took a swipe at Russia's argument that the North didn't test an ICBM.

"Not only has the secretary-general said this was an ICBM and the US has said this is an ICBM. North Korea has said this is an ICBM. So if you need any sort of intelligence to let you know that the rest of the world sees this as an ICBM, I'm happy to provide it," she said.

She also emphatically urged Russia and China to endorse new sanctions.

"If you are happy with North Korea's actions, veto it. If you want to be a friend of North Korea, veto it. But if you see this as a threat, if you see this as what it is, which is North Korea showing its muscle, then you need to stand strong and vote with the international community to strengthen sanctions on North Korea. And if you choose not to, we will go our own path," Haley said.

"It's time that we all stand together and say we will not put up with this action. To sit there and oppose sanctions or to sit there and go in defiance of a new resolution means you're holding the hands of Kim Jong-un," she said. (Yonhap)