North Korea has unveiled a propaganda video of its threat to fire missiles near the US territory of Guam as it threatened the US with “merciless revenge” for ignoring Pyongyang’s warnings over annual military drills with South Korea.

Displaying images of Donald Trump staring at a cemetery filled with crosses and Vice-President Mike Pence enveloped by flames, the nearly 4 minute video showed the island of Guam being targeted by intermediate-range ballistic missiles.

"Americans should live with their eyes and ears wide open. They will be tormented day and night by the Hwasong-12 rockets without knowing when they will be launched," the caption reads, according to Yonhap. "They will be in jitters."