Syria has been removed from the United States’ list of state sponsors of terrorism, marking another significant step in the Trump administration’s easing of sanctions against the country and potentially making it easier for international companies and banks to conduct business there.
The US Treasury Department said the decision was consistent with President Donald Trump’s commitment to provide sanctions relief to Syria. US Secretary of State Marco Rubio said the move recognised positive measures and commitments by the Syrian government under President Ahmed al-Scharaa to fully distance itself from international terrorism.
The decision removes a designation that had restricted Syria’s access to international economic and financial activity for decades. Syrian Foreign Minister Asaad al-Schibani told Reuters at the weekend that his government hoped removing what he described as the final obstacle would allow Syria to become reintegrated into the global financial system.
“There are now no obstacles to investment and the rebuilding of the economy,” he said.
Syria had been designated a state sponsor of terrorism since 1979. The US State Department had already informed Congress in July of its intention to remove the country from the list, describing the move as an “opportunity for rebuilding”. The announcement was nevertheless subject to congressional review before the decision took effect.
The change is expected to have consequences beyond the formal removal of the designation. International companies and banks are likely to find it easier to engage in business with Syria, potentially opening greater scope for financial and commercial activity as the country seeks to rebuild its economy.
The decision follows a broader shift in US policy towards Syria since the fall of the government of Bashar al-Assad at the end of 2024. Washington has progressively opened relations with the country and has already lifted extensive sanctions.
Trump met Ahmed al-Scharaa at the White House in November 2025, further signalling the change in Washington’s approach towards Syria’s new leadership.
Before becoming interim president, al-Scharaa led the Islamist rebel group HTS, which emerged from the Al-Nusra Front, an offshoot of the Al-Qaeda terrorist network. Alongside removing Syria from the state sponsors list, the US State Department has now also lifted the designation of the Al-Nusrah Front and HTS as global terrorist organisations, which had carried associated sanctions.
The changes represent a substantial departure from the restrictions that had governed US policy towards Syria for decades. Being designated a state sponsor of terrorism carries stringent sanctions, including severe restrictions on US foreign assistance, bans on defence exports and sales, and export controls covering goods that can have both civilian and military applications.
Removing Syria from the list therefore eliminates a particularly significant layer of restrictions at a time when its government is seeking investment and economic reconstruction.
The move also leaves only three countries on the US State Department’s list of state sponsors of terrorism: Cuba, North Korea and Iran.
For Syria, the removal marks another step in its effort to reconnect with international financial and economic institutions after years of isolation. For Washington, it forms part of a broader policy shift that has progressively reduced sanctions and expanded engagement with the country since the fall of Assad.
The immediate significance of the decision is economic as much as diplomatic. By removing Syria from a designation that has constrained international financial and commercial activity since 1979, the United States has removed one of the most significant formal barriers to foreign business at a critical stage in the country’s attempt to rebuild.
