Washington on Tuesday designated Iran's Islamic Revolutionary Guard Corps (IRGC) as a "foreign terrorist organization," and it is the first time the U.S. has labelled the military of a foreign country as a terrorist group. The U.S. decision targets not only the IRGC, but also the whole of the Iranian government. For example, U.S. Secretary of State Mike Pompeo said, "We are doing it because the Iranian regime's use of terrorism as a tool of statecraft makes it fundamentally different from any other government."

The country's decision could be seen as an attempt by President Trump to further isolate Iran in the Middle East and to deter foreign states or companies from having any connections with the IRGC. However, it is not the first time that Washington has picked a fight with the IRGC. In 2011, the U.S. Treasury sanctioned the IRGC for "systemic human rights abuses" as well as one of its units, the Quds Force. Even after Washington lifted nuclear sanctions on Iran in 2016 following the adoption of the Iran nuclear deal reached in 2015, sanctions on the IRGC nevertheless remained in place.

The new U.S. announcement over the IRGC was made at a very sensitive time, especially given that the Israeli election is being held and Israeli Prime Minister Benjamin Netanyahu faces formidable challenges from the Blue and White political alliance that consists of former Israeli military leaders and political figures.Thus, such a move that seeks to undermine Israel's archrival and its IRGC can also be seen as intended to help bolster Netanyahu's domestic support.

Nevertheless, it also reflects the expanding influence of the IRGC in the Middle East. From Iraq to Syria, from Lebanon to Yemen, the IRGC, especially the IRGC's Quds Force led by General Qasem Soleimani, is playing an increasingly important in the region.

In the autumn of 2017 it was Iran that coordinated the military offensive with the Iraqi government forces to retake Kirkuk, the important oil city in northern Iraq, from Iraqi Kurdish forces. It is the IRGC that coordinated and organized different Shia militant groups in Syria to safeguard the Syrian government. Therefore it is not surprising for the Trump administration to target the IRGC and try to limit its development by designating it as a "terrorist group." By doing so the administration makes it a federal crime for any U.S. person to do business or to provide support for the IRGC.

However, Washington's decision to designate the IRGC as a terrorist group might not have much effect, especially in terms of putting more economic and political pressure to the IRGC.

On the one hand, given the very sensitive role of the IRGC, very few foreign companies that have close connections with U.S. market actually have businesses ties with the IRGC. After Trump's decision to withdraw from the Iran nuclear deal signed by the Obama administration with Iran, all the major companies sensed the danger of maintaining their commercial links with both Iran and the IRGC and many of these companies suspended their business with Iranian partners. Therefore, the U.S. move designed to further crush the IRGC seems unnecessary.

Meanwhile, to designate the IRGC as a terrorist group might further expand Iran and IRGC's influence in the Middle East. For many groups that have close ties with Iran, designating the IRGC as a terrorist group suggests the rising role of the IRGC in the region, and helps expand its influence of the IRGC among local public. Further, in Iraq where the pro-Iran political and military groups are active, the new U.S. announcement over the IRGC might be counterproductive and may further increase the popularity of the IRGC. As a state that tries to strike a balance between the U.S. and Iran, Iraq is not able to cut its ties with Iran, and many Iraqi political and military groups still enjoy close connections with the IRGC.

The role of the IRGC in the Middle East is so important that no one is able to ignore or underestimate it. To link the IRGC with terrorism, for Washington, might show the Trump administration's determination to restrict the influence of both IRGC and Iran, but the real impact could be only very limited.