The United States has removed Syria from its list of state sponsors of terrorism, ending a designation that had imposed severe economic restrictions for decades and marking a major step towards closer relations between Washington and Damascus.
The US Department of State also revoked the designation of al-Nusrah Front, also known as Hay’at Tahrir al-Sham (HTS), as a foreign terrorist organisation.
HTS-led rebels overthrew longtime Syrian President Bashar al-Assad in December 2024, bringing an end to more than a decade of civil war and the Assad family’s rule.
US Treasury Secretary Scott Bessent said the latest measures were intended to encourage investment and support political and economic stability in Syria.
“Today’s action will help foster additional investment in Syria to promote political and economic stability,” Bessent said.
The Treasury Department said the changes were consistent with President Donald Trump’s pledge to provide sanctions relief to Syria. It also stressed that the removal of restrictions did not represent a change in Washington’s approach to combating international terrorism.
The United States first announced in July that it planned to remove Syria from the state sponsors of terrorism list. The decision was viewed as a significant gesture towards Ahmed al-Sharaa, the former HTS leader who became Syria’s most powerful political figure following Assad’s removal.
Trump later met Sharaa on the sidelines of a NATO summit in Turkey. Sharaa, who previously had links to jihadist groups, has since sought to present himself as a leader capable of bringing together Syria’s divided communities and rebuilding the country.
US Secretary of State Marco Rubio said the latest decisions would give Syrians greater opportunities to rebuild their economy.
The measures remove what Washington described as major remaining barriers to private investment and could help Syria reconnect with international financial markets and the wider global economy.
Syria has faced extensive economic restrictions since the Assad government was placed under US sanctions. The restrictions limited international business activity and made it difficult for companies and financial institutions to operate in the country.
The removal of the terrorism designation was welcomed by Syria’s central bank.
Safwat Raslan, governor of the Central Bank of Syria, described the decision as a historic development that would help restore the country to the international economic system.
He said the bank was working to establish a modern and reliable financial system.
The US decision represents one of the clearest signs yet of improving relations between Washington and Syria’s new leadership. However, American officials have stressed that sanctions and other measures targeting specific individuals and organisations involved in terrorism or other harmful activities will remain in place.
