"Fearful" would be the best option when trying to describe the mood this passage creates for the audience, although technically it could create other moods for a reader.
He is described as "standing above our homes". This indicates that he could be taller than their homes, and also that he is more powerful than the people. He is also making threats on their lives when it says he "threats to swallow us." Another reason why one might be fearful is because he is described as having spears to kill.
