"It is still possible we will ratchet up (the pressure) even more depending on the actions of the DPRK (North Korea)," Kerry told reporters after a G7 meeting in Hiroshima.
"But we have made it clear... We are prepared to negotiate a peace treaty" on the Korean peninsula, he said, repeating that such a move would depend on North Korea's denuclearisation.
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The conflict ended with an armistice and not a peace treaty. The US insists that Pyongyang must denuclearise as a condition for talks on a peace pact.
The State Department confirmed in February that Pyongyang had reached out to Washington in a tentative bid to discuss a treaty, but said its January nuclear test had derailed the initiative.
The North said Saturday said it had successfully tested an engine designed for an inter-continental ballistic missile that would "guarantee" an eventual nuclear strike on the US mainland.
It was the latest in a series of claims of significant breakthroughs in nuclear weapons and ballistic missile programmes.
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