Iran nuclear deal’s final hurdle is lifting terrorism sanctions on Revolutionary Guards

U.S. allies including Israel want the Iranian security force to remain on the list of Foreign Terrorist Organizations 

The issue is galvanizing opposition to the nuclear deal in Washington and among Middle East allies such as Israel, where the government issued stinging public criticism of any attempt to remove the terrorism designation of the Islamic Revolutionary Guard Corps. …

The view among Mr. Biden and many of his top advisers is that reaching a deal with Iran now and then improving upon the agreement later is a better option than waiting, these officials said. The White House also views an agreement restraining Iran’s nuclear program as key to Middle East stability, allowing the U.S. to focus on China and Russia. And these U.S. officials argue that withdrawing from the 2015 deal didn’t yield positive results.

“Not only has Iran’s nuclear program advanced, but their behavior in the region and beyond has gotten more aggressive, including by the Islamic Revolutionary Guard,” White House press secretary Jen Psaki said last week. “So the notion that the actions of the past administration pulling out of the Iran nuclear deal has cut down on the actions or the escalatory behavior of the [Guard] is inaccurate.”

According to people involved in the talks, the American offer would remove the Guard from the U.S. list of Foreign Terrorist Organizations if Iran commits to rein in its regional aggression and refrains from targeting Americans. If Iran doesn’t abide by the agreement, the listing could be reimposed.

Iran, which refuses to negotiate directly with Washington, hasn’t yet responded, creating a stalemate that senior U.S. officials say could imperil a deal.