Geopolitical and strategic dynamics of broader Middle East are undergoing seismic changes due to escalating tension between the United States and Iran, after unilateral American withdrawal from the nuclear agreement between Iran and the P5+1 countries. The situation further aggravated with subsequent re-imposition of the US sanctions on Iran earlier lifted as a result of Iranian compliance of the Joint Comprehensive Plan Of Action (JCPOA), also known as the P5+1 Agreement. The recent escalation started when last month, the Trump administration cancelled the US waivers allowing eight countries – China, Greece, India, Italy, Japan, South Korea, Taiwan, and Turkey to continue buying oil from Iran. Moreover, the US designated Iran’s elite Revolutionary Guard Corps (IRGC) as a foreign terrorist organization, and threatened others to stop ‘doing business’ with Iran as this would be considered as ‘bankrolling terrorism.’ In a tit for tat response, Iran declared American military’s Central Command (Centcom) as a terrorist organization and the US government as sponsor of terror. The defiant reciprocal moves by Iran have vitiated the already precarious security environment of the region.