US may label Iran Guard 'terrorist'

The US may soon designate Iran's Revolutionary Guard Corps a foreign terrorist organization in a hard-line diplomatic move that will target the finances of the group, US officials said yesterday.

The designation, which was initially reported by The New York Times and The Washington Post, would be the first time the US has placed the armed forces of any sovereign government on its list of terrorist organizations.

Iran experts said ramping up the pressure by squeezing financing for the Guard also was aimed at pacifying those within and outside the Bush administration who wanted military action against Tehran because of its nuclear programme and were frustrated that diplomatic pressure had so far not worked.