U.S. declares Iran force a foreign terrorist organization

WASHINGTON -- The United States on Monday designated Iran's Revolutionary Guard Corps a foreign terrorist organization, an unprecedented declaration against a foreign government potentially prompting retaliation and making it harder for American diplomats and military officers to work with allies in the region.

It is the first time the U.S. has designated an entity of another government as a terrorist organization, placing a group with vast economic resources answering only to Iran's supreme leader in the same category as al-Qaida and the Islamic State.

"This unprecedented step, led by the Department of State, recognizes the reality that Iran is not only a state sponsor of terrorism, but that the IRGC actively participates in, finances and promotes terrorism as a tool of statecraft," President Donald Trump said in announcing the measure.

Secretary of State Mike Pompeo said the designation is intended to increase pressure on Iran, isolating it further and diverting some of the financial resources it uses to fund terrorism and militant activity in the Middle East and beyond. But, in addition to the potential for Iranian retaliation, it complicates a delicate balance for U.S. personnel in at least two key countries.

No waivers or exceptions to the sanctions were announced, meaning U.S. troops and diplomats could be barred from contact with Iraqi or Lebanese authorities who interact with Guard officials or surrogates.

The Pentagon and U.S. intelligence agencies had also raised concerns about the impact of the designation if the move did not allow contact with other foreign officials who may have met with or communicated with Guard personnel. Those concerns have in part dissuaded previous administrations from taking the step, which has been considered for more than a decade.

Critics of the hardline policy also see it as a prelude to conflict.

"This move closes yet another potential door for peacefully resolving tensions with Iran," said Trita Parsi, the founder of the National Iranian American Council. "Once all doors are closed, and diplomacy is rendered impossible, war will essentially become inevitable."

National Security Action, a group made up of mainly former Obama administration officials, said it would put U.S. troops at risk while jeopardizing the 2015 nuclear accord with which Iran is still complying.

"We need to call out today's move for what it is: another dangerous and self-defeating tactic that endangers our troops and serves nothing but the Trump administration's goal of destroying the Iran deal," it said.

The designation could also open hundreds of foreign companies and business executives to U.S. travel bans and possible prosecution for sanctions violations.

It blocks any assets IRGC entities may have in U.S. jurisdictions and bars Americans from any transactions with it. When it takes effect next week, it will allow the U.S. to deny entry to people found to have provided the Guard with "material support" or prosecute them for sanctions violations. That could include European and Asian companies and businesspeople who deal with the Guard's many affiliates.

"It makes crystal clear the risks of conducting business with, or providing support to, the IRGC," Trump said. "If you are doing business with the IRGC, you will be bankrolling terrorism."

The IRGC is a paramilitary organization formed in the wake of Iran's 1979 Islamic Revolution to defend the government. The force answers only to Iran's supreme leader, operates independently of the regular military and has vast economic interests across the country. The U.S. estimates it may control or have a significant influence over up to 50% of the Iranian economy, including non-military sectors such as banking and shipping.

Iran has long been designated a "state sponsor of terrorism" by the U.S. and the State Department currently designates more than 60 organizations as "foreign terrorist organizations." But none of them is a state-run military.