1. N. Korea denies sinking S. Korea ship, warns that any retaliation will trigger 'all-out' war
2. White House calls ship sinking a peace-challenging 'act of aggression' by N. Korea
3. White House says North Korean action is challenge to international peace and violation of armistice pact
And from the FT:
South Korea officially announced that a North Korean submarine torpedoed one of its warships in March, a verdict that opens the path towards referring Pyongyang to the United Nations Security Council.
Shortly after the announcement, The White House issued a strong condemnation of North Korea’s attack and said it would support Seoul in its attempts to “secure justice for the 46 service members killed”. In response, Pyongyang threatened “strong measures”, including war, if the South attempted to ratchet up international sanctions.
China - North Korea’s only major political and economic backer - urged both North and South Korea to show restraint amid fears that the dispute could have repercussions around the region. Japan, a member of the six-party talks on denuclearising North Korea, joined others in condemning Pyongyang.
Chinese Foreign Ministry spokesman Ma Zhaoxu said his government had “noted” the official report, published by South Korea adding that Beijing would make its own assessment of the investigation.
Just as Greece with its tiny 2.5% of European GDP lead to the flash crash, will this "minor" transgression ultimately lead to something far worse?