Senator John McCain on Egypt, Middle East and Iran

Senator John McCain (R-AZ) said the US needs to tell Egyptian president Mohamed Morsi his recent power grab is "unacceptable."

Morsi issued a decree on Thursday granting himself broad powers above any court as the guardian of Egypt’s revolution.

The Egyptian leader should "stop and renounce the decision he just made," McCain said, adding that the US and world community has leverage to put pressure on Morsi in the form of monetary aid and world opinion.

Morsi's actions came as a surprise to US officials, and happened just hours after brokering a ceasefire between Hamas and Israel.

McCain called the ceasefire "extremely fragile," and predicted that Hamas "will continue to test the Israelis."

McCain added that the unrest we see across the Middle East "traces back to Iran."

The "Iranians will continue unless they see there is a price to pay," McCain said.