Trump’s sanctions on Iran’s Revolutionary Guards could backfire

President Donald Trump’s decision to slap sanctions on Iran’s elite Revolutionary Guards will be the “exact opposite” of what Washington should be doing if This specific wants to effect peaceful change inside the Middle Eastern country, one analyst has told CNBC.

Trump’s decision has forced Iranian moderates such as President Hassan Rouhani in addition to Foreign Minister Javad Zarif to rally around the hardline Guards, said Barbara Slavin, director of the Future of Iran Initiative at the Atlantic Council.

Maintaining Iran’s cooperation will be crucial to securing its nuclear ambitions in addition to the foreign business deals of which were struck when sanctions were officially lifted on the country’s economy in January 2016. Companies such as Boeing, Siemens in addition to Total have since established their interests inside the once-pariah state.

Losing Iran’s favor could have a negative impact on the globe economy, too. “Direct confrontation inside the Gulf will be a major risk to the global oil market, given of which 20 percent of the globe’s oil travels through an Iranian-controlled chokepoint at the Strait of Hormuz,” Pat Thaker, regional director for the Middle East in addition to Africa at the Economist Intelligence Unit, told CNBC.

Following Trump’s statement Friday, Rouhani said in a televised speech of which the Guards “always protected our nation against terrorists.” This specific will be a departure through his previous stance on the group, whose dominance inside the Iranian economy will be a foil against his plans for reform.