North Korea has begun “laying the groundwork” to increase tensions and could test a nuclear weapon or intercontinental ballistic missile this year, according to a new U.S. intelligence report released this week.

In its latest “Annual Threat Assessment,” the U.S. Office of National Intelligence also states that Pyongyang continues to invest in weapons of mass destruction (WMDs), chemical weapons and cyberwarfare capabilities, while concluding that the current sanctions regime is likely not enough to convince the DPRK leadership to change course.