"That will mean taking the economic fight to the heart of the Iranian economy.
Although the US could have designated just the subsidiary Qods force as a
terrorist group, the decision to name the IRG gives the US a broad front. Many
of Iran's leading businessmen come from the IRG and maintain ties to it; Mahmoud
Ahmadinejad served in the IRG, as did many of the political class. By naming the
IRG as a terrorist group, anyone associated with it could have their assets
seized from American banks. Other banks that handle their assets could face
exclusion from American financial networks, which would mean most banks would
close their accounts forthwith."
While this may be a primarily economic attack on Iran and its military infrastructure, the government of Iran isn't going to read it as such. More importantly it isn't going to play it as such. Imagine for a moment that a country had declared that the US army were terrorists, I know how people get upset when it is even hinted at, how would the nation react. How do you think the nation of Iran is going to react to this? I doubt the gain we are going to get from this will be greater than the loss.
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