For his part, U.S. Secretary of State Mike Pompeo told a media conference held after Trump's announcement that "this designation will take effect one week from today."

"Businesses and banks around the world now have a clear duty to ensure that companies with which they conduct financial transactions are not connected to the IRGC in any material way," Pompeo said, noting that the U.S. designation will increase the risk of business cooperation between European financial entities and Iran.

Iranian Foreign Minister Mohammad Javad Zarif tweeted that the U.S. designation is "a(nother) misguided election-eve gift to Netanyahu. A(nother) dangerous U.S. misadventure in the region."

Israeli Prime Minister Benjamin Netanyahu also responded via Twitter on Monday, saying that "thank you, President @realDonaldTrump for your decision to designate the Islamic revolutionary guards as a terrorist organization."

"Once again you are keeping the world safe from Iran aggression and terrorism," he said.

After reports of the designation emerged late on Friday, the Iranian foreign minister has taken to Twitter to warn against such a move.

Zarif tweeted on Sunday that "#NetanyahuFirsters who have long agitated for FTO designation of the IRGC fully understand its consequences for U.S. forces in the region. In fact, they seek to drag the U.S. into a quagmire on his behalf."

"@realDonaldTrump should know better than to be conned into another U.S. disaster," Zarif added.

The IRGC on Sunday warned that "if the Americans make such a silly move and endanger our national security, we will put reciprocal measures on our agenda based on the policies of Iran's Islamic establishment."

In case of such a decision by the United States, "the American army and U.S. security forces would not experience peace and calm in the Middle East anymore," Major General Mohammad Ali Jafari was quoted as saying by Press TV.

U.S. media quoted analysts as saying that the U.S. move, together with possible retaliation from Iran and the Shiite forces in Middle East nations, would further escalate the regional confrontation, and complicate the mission of U.S. forces and diplomats in the region that have to engage with governments that may have close links with Iran. 

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