On February 19, 2026, the European Union formally classified the Iranian Revolutionary Guard Corps (IRGC) as a terrorist organization, marking a significant shift in its approach to dealing with Iran. This designation implies that the IRGC will face sanctions and restrictions under EU law, a move that Iceland is also expected to adopt in its own legal framework. The decision comes in the context of the EU's broader efforts to combat terrorism and illegal activities associated with the IRGC, particularly in relation to military operations in the Persian Gulf and the Strait of Hormuz.

The IRGC has been the subject of international scrutiny for its involvement in various military operations and alleged funding of terrorist activities. The EU's decision reflects growing concerns among member states regarding the destabilizing role of the IRGC in the region and its impact on international security. Moreover, this classification represents a unified stance among EU nations aimed at addressing Iran's aggressive postures and conduct that potentially threaten peace in the Middle East.

In Iceland, public reactions are being mobilized, with protests planned in front of the Ministry of Foreign Affairs to pressure the government to adopt this designation. The EU's announcement emphasizes the importance of collective action against entities recognized as terrorist organizations, and it signals a commitment to align Iceland's policies with those of the EU in countering terrorism and promoting regional stability. This development may also affect Iceland's diplomatic relations and stance on security matters related to Iran.