The United States on Monday removed Syria from its list of state sponsors of terrorism, ending a designation that had been in place since 1979 and imposing significant restrictions on trade, investment and financial transactions with the country.The move, which followed a 45-day congressional review, marks a further step in Washington’s efforts to deepen ties with Syria’s new government under President Ahmed al-Sharaa. The US also revoked the designation of the Nusrah Front, later known as Hay’at Tahrir al-Sham (HTS), as a Specially Designated Global Terrorist organisation. The Treasury Department announced corresponding sanctions relief.“These actions were all taken in recognition of the positive actions taken and further commitments by the Syrian government under President Ahmed al-Sharaa to fully distance Syria from acts of international terrorism,” US Secretary of State Marco Rubio said in a statement.Treasury Secretary Scott Bessent said the measures would encourage investment and support Syria’s economic recovery. “Today’s action will help foster additional investment in Syria to promote political and economic stability,” he said.The Treasury said the changes were “in line with President (Donald) Trump’s promise to deliver sanctions relief to Syria”. It added that the removal of the restrictions “does not change Treasury’s posture with regards to countering global terrorism and our commitment to hold bad actors in Syria accountable.”The state sponsor designation had remained a major obstacle for businesses and financial institutions considering investment in Syria, even after the US ended its broader sanctions programme against the country in July 2025. The designation restricted US foreign assistance, defence exports and sales, certain dual-use goods and financial transactions.The Treasury has since said US financial institutions can provide services to Syria, process payments involving Syrian banks and establish correspondent banking relationships, provided sanctioned entities are not involved.Syria’s government welcomed Monday’s decision, describing it as an opportunity to reconnect with the global financial system and attract investment needed for reconstruction after nearly 14 years of war.Syrian Foreign Minister Asaad al-Shibani had earlier called the terrorism designation the “last obstacle” to rebuilding economic ties. “There is no longer any obstacle to investment, doing business and rebuilding economic life in Syria,” he said.The US designation had been imposed in 1979, when Washington accused the government of then-President Hafez al-Assad of supporting militant groups. It continued under his son Bashar al-Assad, who was overthrown by rebels led by Sharaa in December 2024.HTS, formerly known as the Nusrah Front, was once affiliated with al Qaeda in Syria before breaking ties with the group in 2016. Sharaa later led the rebel coalition that toppled Assad and became president.With Syria’s removal, Cuba, Iran and North Korea remain the three countries on the US state sponsors of terrorism list.The latest decision follows a broader rapprochement between Washington and Damascus. US President Donald Trump has backed sanctions relief for Syria and met Sharaa during a visit to Turkey, as the new Syrian government seeks international support for economic reconstruction.Syrian officials have also been pursuing closer links with international financial institutions and companies. The country’s finance ministry has held discussions with Bank of America executives, while Mastercard has announced work with QNB Group and Syria’s central bank to develop infrastructure for international card payments.Washington has said its engagement with Damascus is aimed at supporting Syria’s stabilisation, economic recovery and reintegration into the global economy, while maintaining targeted measures against terrorism and other sanctioned actors.
