Iran Escalates Rhetoric, Labels EU Armies as 'Terrorists' Amid Rising US Tensions

By Daniel Brooks | Global Trade and Policy Correspondent

DUBAI, Feb 1 (Reuters) — Iran's Supreme Leader Ayatollah Ali Khamenei issued a stark warning on Sunday, stating that any U.S. military action against the Islamic Republic would ignite a regional conflict, sharply escalating a war of words with Washington. In a retaliatory move, Iran's parliament moved to formally designate the armies of European Union member states as "terrorist organizations."

The heightened rhetoric unfolds against a backdrop of increased U.S. military presence in the Middle East. The Pentagon has bolstered its naval forces in the region, deploying an aircraft carrier strike group and multiple destroyers following repeated threats from the Trump administration over Iran's nuclear program and its handling of domestic unrest.

Despite the public posturing, back-channel communications suggest both sides have not entirely shut the door on diplomacy. U.S. President Donald Trump told reporters that Iran was "seriously talking," echoing comments from Iranian security officials about ongoing negotiation arrangements. "The goal remains a deal that ensures no nuclear weapons," Trump added, while Tehran insists any talks must respect its defensive sovereignty.

The immediate catalyst for the EU's action—and Iran's countermove—was the bloc's decision last Thursday to label Iran's Islamic Revolutionary Guard Corps (IRGC) a terrorist entity. This designation was a direct response to the IRGC's role in the violent suppression of nationwide protests that began last year.

"By trying to hit the Revolutionary Guards... the Europeans actually shot themselves in the foot," Iranian Parliament Speaker Mohammad Baqer Qalibaf declared during a session where lawmakers wore IRGC uniforms in solidarity. Following his speech, the chamber erupted with chants of "Death to America, Shame on you Europe."

Analysts Note: The reciprocal terrorist designations mark a new low in Iran-Europe relations, effectively severing remaining military-to-military dialogue channels. Meanwhile, the U.S. naval buildup, while presented as a deterrent, increases the risk of an accidental clash in congested waterways like the Strait of Hormuz—a vital global oil chokepoint.

The domestic protests, which posed the most significant challenge to Iran's leadership in decades, have largely been quelled. Casualty figures remain contested; Iranian officials cite over 3,000 deaths, while independent rights groups estimate the toll to be significantly higher.

Voices from the Region:

"This is a dangerous tit-for-tat that benefits no one," said Karim Al-Jabouri, a political analyst based in Baghdad. "It closes diplomatic windows and pushes all parties closer to a miscalculation that could spiral beyond control."

"The EU finally showed some spine by calling the IRGC what it is—a terrorist organization," stated Elena Moretti, a former Italian diplomat now with a Brussels think tank. "Iran's response is a predictable but pathetic attempt at moral equivalence. Their regime's brutality is on record for the world to see."

"The American warships are an act of pure intimidation. The Leader is right to stand firm," argued Reza Farshad, a shopkeeper in Tehran interviewed via messaging app. "We will not be bullied into surrendering our rights."

"This is madness! Branding entire EU armies as terrorists? It makes us a pariah state," lamented Nazanin Behzadi, a university student in Shiraz, who asked to use a pseudonym. "Our leaders are isolating us further while people suffer from the economy. They're playing with fire, and we'll get burned."

(Reporting by Dubai Newsroom; Editing by Alexander Smith, Jane Merriman and Hugh Lawson)

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