The President Donald Trump administration announced its plan this week to officially designate Iran's military unit, the Islamic Revolutionary Guard Corps (IRGC), as a foreign terrorist organization (FTO), effective April 15.
The unprecedented move garnered swift reaction from critics as well as the Iranian government, which subsequently labeled the U.S. a terrorism supporter and Centcom, U.S. Central Command, a terrorist group.
By definition, terrorists are non-state actors — so this designation for a foreign government's military is a major first on the international stage.
But with Iran's economy already resembling that of a basket case, how much does this really change things?
"The economics are expected to be minimal because the IRGC is heavily sanctioned, and international companies have to be incredibly cautious engaging in business in Iran," Sanam Vakil, a senior fellow at Chatham House and associate professor at Johns Hopkins School of Advanced International Studies, told CNBC via phone.