The five permanent members of the U.N. Security Council, along with Japan and South Korea, failed to hammer out a resolution Thursday condemning North Korea for its latest nuclear test and missile launches.

The seven countries narrowed their differences in the fifth small group meeting since the nuclear test May 25th, but could not produce a final resolution. They reportedly remain divided over a clause that would allow for the inspections of North Korean ships suspected of carrying weapons of mass destruction.

They were, however, able to come to an agreement on a number of penalties, including freezing North Korea's assets overseas and banning the communist country from engaging in financial transactions with foreign banks. Also agreed upon was an overseas travel ban on high-ranking North Korean government officials.

A diplomatic source at the U.N. said that although the seven countries made headway in the small group meeting, more discussions will be needed before a final agreement can be reached.

The source predicted the resolution may be completed sometime early next week.