US lifts decades-old terrorism designation for Syria

The United States on Monday removed Syria from its list of state sponsors of terrorism, rescinding a designation that had been in place for 47 years. The move, announced by the Treasury Department, lifts what officials described as the final major barrier to private-sector investment in Syria and its reintegration into the global economy.

Secretary of State Marco Rubio said the decision was taken in recognition of "positive actions taken and further commitments by the Syrian government under President Ahmed al-Sharaa to fully distance Syria from acts of international terrorism." Rubio said the delisting gives Syrians "a path to prosperity" and "eliminates the final major barriers for private sector investment in Syria and promotes Syria's economic recovery and reintegration into the global economy."

The designation, which dated back to 1979 when Washington accused the government of then-President Hafez al-Assad of supporting militant groups, carried restrictions on U.S. foreign assistance, defense exports, certain dual-use items, and financial transactions. It remained in place throughout the rule of his son Bashar al-Assad, who was toppled by rebels led by al-Sharaa in December 2024.

HTS designation revoked

Alongside the state sponsor of terrorism removal, the State Department revoked the designation of al-Nusrah Front, also known as Hay'at Tahrir al-Sham (HTS), as a Specially Designated Global Terrorist organization. HTS, which was once al-Qaeda's branch in Syria, broke ties with the group in 2016 and has since sought to reposition itself as a political and military force.

The Treasury Department followed through with sanctions relief, saying the moves were "in line with President Trump's promise to deliver sanctions relief to Syria." Treasury Secretary Scott Bessent said: "Today's action will help foster additional investment in Syria to promote political and economic stability."

However, the Treasury stressed that the removal of restrictions "does not change Treasury's posture with regards to countering global terrorism and our commitment to hold bad actors in Syria accountable."

Congressional review and timeline

The delisting took effect after a 45-day congressional notification period, triggered when President Trump formally notified Congress on July 8 of his intention to rescind the designation. The United States had initially announced its intent in July, a move widely seen as a vote of confidence in al-Sharaa.

Trump met al-Sharaa on the sidelines of a NATO summit in Turkey, where he praised the Syrian leader as "fantastic" and "highly respected." The meeting came after the U.S. terminated comprehensive sanctions on Syria in July 2025, while maintaining targeted sanctions on certain individuals and groups.

The Treasury has said American financial institutions can provide services to Syria, process payments involving Syrian banks, and establish correspondent banking relationships with them, provided sanctioned parties are not involved. Reports have indicated that Syria's finance ministry held talks with Bank of America executives over potential cooperation, and Mastercard announced in May that it was working with QNB Group and Syria's central bank to prepare infrastructure for international card payments.

Reactions from Syrian officials

Syrian Foreign Minister Asaad al-Shaibani welcomed the move, calling it a "historic milestone" for the Syrian people. In a post on X, he said the designation "was never the choice of the Syrian people, nor was it befitting of Syria and its history," and reflected the "transformation brought about by the Syrian people" and the new Syrian state's commitment to international peace and security.

Al-Shaibani thanked Trump, Rubio, and U.S. Ambassador Thomas Barrack for their role in the decision. Trump reposted al-Shaibani's message on Truth Social. In an earlier July 9 post on X, al-Shaibani had said Syria had "closed a dark chapter" in its history with the lifting of the 1979 classification.

Syrian Finance Minister Mohammed Barnieh and central bank governor Safwat Raslan also welcomed the move, with Raslan hailing it as a "historic milestone" in a post on X.

Remaining designations

With Syria's removal, Cuba, Iran, and North Korea remain the three countries designated by the United States as state sponsors of terrorism. Rubio also noted that Syria had formally joined the Global Coalition to Defeat ISIS in November and conducted operations against the networks of ISIS, al-Qaida, Hizballah, and Iran-aligned groups.

Perspectives

U.S. Administration

The Trump administration frames the delisting as a recognition of the Syrian government's positive actions and a fulfillment of the president's promise of sanctions relief, aimed at fostering investment and stability.

Syrian Government

Syrian officials describe the removal as a historic milestone that ends a designation associated with the former regime, and express hope that it will reconnect Syria to the global financial system and boost investment.

Analysts and Observers

Some analysts note that while the move signals warming ties, risks remain significant, with Syria still far from secure and lacking representative government, and at the center of tensions between Israel and Turkey.