US declares Iran's guard force a 'terrorist organisation'

The United States on Monday designated Iran's Revolutionary Guard a "foreign terrorist organization" in a move to increase pressure on the country that could also have significant military, diplomatic and economic implications throughout the Middle East and beyond.

It is the first time that the US has designated a part of another government as a terrorist organization. The designation could spark Iranian retaliation as well as potentially open hundreds of foreign companies and business executives to US travel bans and possible prosecution.

"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.

Secretary of State Mike Pompeo said the move is part of an effort to put "maximum pressure" on Iran to end its support for terrorist plots and militant activity that destabilizes the Middle East.

The designation blocks any assets that IRGC entities may have in US jurisdictions and bars Americans from any transactions with it. When it takes effect next week, it will allow the US to deny entry to people found to have provided the Guard with "material support" or prosecute them for sanctions violations.

Those could include European and Asian companies and business people 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."