The United States has removed Syria from its list of state sponsors of terrorism, eliminating a major obstacle to foreign investment as Washington deepens its relationship with Syria’s new government.
The decision, announced Monday and published on the U.S. Treasury Department’s website, took effect after a 45-day congressional review period. President Donald Trump had formally notified Congress of his intention to remove the designation on July 8.
U.S. Secretary of State Marco Rubio said the decision reflected steps taken by the Syrian government under President Ahmed al-Sharaa to distance the country from international terrorism.
“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,” Rubio said.
The designation had been in place since 1979, when Washington accused the government of then-President Hafez al-Assad of supporting militant groups. It remained throughout the rule of his son, Bashar al-Assad, who was ousted by rebels led by Sharaa in December 2024.
Damascus seeks investment and financial reintegration
Syrian Foreign Minister Asaad al-Shibani had described the removal as the “last obstacle” to restoring the country’s links with the global financial and economic system.
“There is no longer any obstacle to investment, doing business and rebuilding economic life in Syria,” Shibani told Reuters on Saturday.
The terrorism designation imposed restrictions on U.S. foreign assistance, defense exports and sales, certain dual-use goods and financial transactions. It also created legal and compliance concerns for banks and investors considering entering Syria, even after the United States dismantled its broader sanctions regime.
The Trump administration ended comprehensive U.S. sanctions on Syria in July 2025 but retained targeted measures against Bashar al-Assad and his associates, human rights abusers, drug traffickers, Islamic State and al Qaeda affiliates, and Iranian proxies.
The U.S. Treasury has also said American financial institutions can provide services to Syria, process payments involving Syrian banks and establish correspondent banking relationships, as long as sanctioned individuals or entities are not involved.
Syria is seeking billions of dollars in investment to rebuild after nearly 14 years of war, and interest from international financial institutions had already begun to emerge.
Syria’s Finance Ministry said this month that Finance Minister Mohammad Yisr Barnieh had held talks with Bank of America executives about potential cooperation and the country’s reintegration into the international financial system. According to the ministry, bank officials expressed a willingness to visit Syria and continue discussions.
Mastercard has also taken steps toward expanding financial infrastructure in Syria. In May, the company said it was working with QNB Group and Syria’s central bank to prepare the infrastructure needed for international card payments.
Mastercard has described itself as an early investor in Syria and said it wants to help connect Syrian consumers and businesses with global payment networks.
US and Syria deepen cooperation
Trump announced his intention to remove the designation after meeting Sharaa in Ankara in July. In a letter seen by Reuters, Trump told the Syrian president that he had promised to “remove all barriers” standing in the way of Syria’s reconstruction.
The decision followed months of negotiations between Washington and Damascus over Syria’s economic and foreign policy.
As part of those discussions, Damascus agreed to sharply reduce imports of Russian oil, according to three sources familiar with the negotiations.
The move also marks another step in the Trump administration’s growing engagement with Sharaa, a former commander of the al Qaeda-linked Nusra Front who broke with the global jihadist network in 2016 and later led the rebel coalition that overthrew Assad.
Washington has praised cooperation between Sharaa’s government and the United States against Islamic State. U.S. officials have said easing restrictions is intended to give Syria an opportunity to stabilize, attract investment and begin rebuilding.
