Sen. John McCain, R-Ariz., told "Fox News Sunday" Egyptian President Mohamed Morsi made a serious misstep when he announced the nation's court system could not overturn presidential decrees until a new constitution is in place.
McCain told Fox the decree had sparked unrest in the streets that made Egypt vulnerable to a coup by either the military of militant Islamists.
"You could also see a scenario where there is continued chaos," said McCain, who warned Egypt could wind up falling into a situation similar to the one that installed the current regime in Iran.
McCain added the United States appreciated Morsi's steps to broker a fragile cease-fire in Gaza, but predicted Hamas would keep testing Israel in the coming months with support from the Iranians.
"In the past, it's always been the United States that brokered the peace deals and there is a clear perception among Hamas is that they won on this one," McCain said.