In a move that defied pleas from close allies, the U.S. president tore up the landmark nuclear accord and said he would seek to re-impose economic sanctions on Tehran. Iranian lawmakers responded to Trump's decision by setting fire to a U.S. flag and chanting "death to America" during a session of parliament.
"I think the problem here is that what Trump has done is he has empowered the hardliners in Iran," Nicholas Fitzroy, research analyst at the Economist Intelligence Unit, told CNBC's "Squawk Box Europe."
Fitzroy said the Trump administration's abandonment of the multi-party pact could prove to be the flashpoint for Iranian hardliners to adopt "a more confrontational approach" to a region already on edge.
"Our view is that southern Syria will see a new conflict breaking out between Iranian proxies and Israel," he added.