US President Donald Trump on Thursday canceled a summit with North Korean leader Kim Jong Un planned for Singapore in June.
It would have marked the first meeting between a sitting US president and a North Korean leader.
The recent thawing of tensions on the Korean peninsula had spurred optimism about a potential opening of trade between the North and South, which would have impacted fuel and minerals markets.
Trump notified Kim in a letter released by the White House.
"I was very much looking forward to being there with you," Trump said in the letter. "Sadly, based on the tremendous anger and open hostility displayed in your most recent statement, I feel it is inappropriate, at this time, to have this long-planned meeting."
On Wednesday, North Korea's foreign minister criticized US Vice President Mike Pence for making "ignorant and stupid remarks" about the country sharing a fate with Libya if Kim did not make a deal with Trump.
Trump left open the possibility of a summit at another time.
"I felt a wonderful dialogue was building up between you and me, and ultimately, it is only that dialogue that matters," he said in the letter to Kim. "Some day, I look very much forward to meeting you."
"If you change your mind having to do with this most important summit, please do not hesitate to call me or write," Trump said.
"The world, and North Korea in particular has lost a great opportunity for lasting peace and great prosperity and wealth. This missed opportunity is a truly sad moment in history."
Earlier this year, the US unveiled sanctions aimed at the illegal trade of petroleum products, coal and other goods with North Korea. In February, Trump said the sanctions were the "heaviest" ever imposed on a country.
The sanctions were aimed at preventing North Korea and others from evading international prohibitions on trade through various methods, including ship-to-ship transfers outside of ports. North Korea operates a fleet of 24 tankers capable of engaging in ship-to-ship transfers of refined petroleum products and other banned goods, according to the US Treasury Department.
During an appearance before the House Foreign Affairs Committee on Wednesday, Secretary of State Mike Pompeo said the US continued to combat illicit maritime trade with North Korea.
"The administration has again redoubled its efforts on ship-to-ship transfers," Pompeo said.
In September, the UN Security Council agreed to a ban on all condensate and natural gas liquids supplied to North Korea and limiting exports of refined products to a total of 500,000 barrels from October 1 to December 31 and to 2 million barrels for all of 2018.
The resolution also barred UN members from exporting more crude to North Korea than they exported over the previous 12 months.
According to China's official customs data, the last crude exports to North Korea were in December 2013 at 92,223 mt, with a total of 578,002 mt (4.24 million barrels) of exports to the country that year.
After that, no crude exports to North Korea are recorded, but market sources in North Asia say North Korea currently takes about 6 million barrels/year of Chinese crude.
Trump has criticized China for shipping crude oil, refined products, and other goods to North Korea in violation of UN resolutions.
