Iran has designated Argentina’s navy and air force as "terrorist organisations" in retaliation for Buenos Aires declaring Iran’s Islamic Revolutionary Guard Corps (IRGC) a terrorist entity in April. The move has further escalated tensions between the two countries.

Iran’s Foreign Ministry announced the decision on Wednesday, saying Tehran had acted "based on the principle of reciprocity". Argentina had earlier designated the IRGC as a terrorist organisation owing to pressure exerted by US President Donald Trump’s administration, which urged its allies to take similar action.

"It is evident that the responsibility for all consequences arising from this matter will lie with the Argentine government," Iran’s Foreign Ministry said in a statement. However, the ministry did not explain what consequences Argentina could face. It also did not include Argentina’s army in the designation.

Argentina took action against the IRGC in April over its alleged support for Hezbollah, a Lebanon-based militant group. Buenos Aires blames Hezbollah for the 1994 bombing of the AMIA Jewish community centre in Argentina’s capital. The attack killed 85 people and injured hundreds, making it the deadliest bombing in the South American country's history.

The IRGC is an elite military force that protects Iran’s Shi'ite Muslim clerical rule. It also controls large sections of the country’s economy.

Argentina’s designation of the IRGC came amid growing pressure from Washington to take a tougher position against Tehran. Iran’s latest decision now places Argentina’s two military branches under its terrorist designation, while leaving the army out of the action. The Iranian Foreign Ministry has warned that Argentina will bear responsibility for any consequences arising from the move, without providing further details.