Iran labels Washington's unprecedented decision against a foreign government institution a 'mistake'.
Iran's Islamic Revolutionary Guard is both revered and feared.
The 125,000-strong elite force, comprised of army, navy and air units, answers directly to the country's Supreme Leader Ayatollah Ali Khamenei and controls major businesses in Iran as well.
However, it's been accused of destabilising the Middle East.
The United States has designated the force as a "terrorist" organisation in an unprecedented move.
Iran responded by calling US troops in the Middle East terrorists, and threatened to produce more advanced nuclear centrifuges.
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