2018.05.2820:30:00UTC+00U.S. Delays Implementing North Korea Sanctions as Summit Talks Progress

Washington decided to delay implementing tougher new sanctions against North Korea while it looks to open the doors once more for a summit between President Donald Trump and North Korean leader in June 12.

The U.S. was prepared to announce the major new sanctions as soon as Tuesday but decided on Monday to indefinitely hold off the measures while discussions with North Korea makes headway, according to a U.S. official, citing progress in efforts to fix diplomatic relations between Washington and Pyongyang.

U.S. officials are meeting with North Korean counterparts at the inter-Korean peace village of Panmunjom in an effort to restart summit talks. On Saturday, the leaders of North and South Korea held an unexpected meeting of their own there, as they sought to get the planned meeting between Trump and Kim back on track.

The U.S. indicated last week it would turn its focus to strengthening the sanctions if the summit talks fail. Senior administration officials say additional sanctions are necessary to stop foreign revenues that sustains North Korea and undermining Washington's diplomatic leverage.

North Korea has been hit with one of modern history's most comprehensive sanctions regimes, which cuts off the nation's financial system from the rest of the world and bans majority of its trade. But Pyongyang can still raise cash overseas via a sophisticated network of agents tapping illicit markets globally.