A proposal the Trump administration is considering to designate Iran's Islamic Revolutionary Guard Corps a terrorist organization has stalled over warnings from defense and intelligence officials that the move could backfire, according to officials familiar with the matter, Reuters reported.
"If you do that, there is no way to escalate, and you would foreclose any possibility of talking to the Iranians about anything," one of the officials said, speaking on the condition of anonymity.
Momentum behind a possible presidential order has slowed amid an internal debate that has included concerns it could undermine the fight against Islamic State, draw opposition from key allies, torpedo any U.S.-Iran diplomatic prospects, and complicate enforcement of the Iran nuclear deal, U.S. and European sources said.
The proposal - part of a broader effort to make good on President Donald Trump's vow to take a tougher line against Iran - would, if implemented, take the unprecedented step of blacklisting the entire IRGC as a "Foreign Terrorist Organization."
That would go far beyond the targeted sanctions already imposed on individuals and entities linked to the IRGC, Iran's most powerful security force, which also controls large swathes of the Iranian economy and wields great political influence.
