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The US has revealed plans to add Iran's Revolutionary
Guards to its list of outlawed terrorist organisations | Barely a month after Iran and the US made diplomatic contact after 25 years the US has revealed plans to add Iran's Revolutionary Guard Corps to its list of outlawed foreign terrorist organisations.
Intensified by the US military build-up in the Gulf, Iran's nuclear programme, and the conflict in Iraq, long-standing suspicions between the two countries seem set to enter a new phase.
Inside Story explores what may happen next.
This episode of Inside Story aired on 19 August 2007
Watch Inside Story at 17:30GMT on Al Jazeera English
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