Washington says the historic decision could encourage investment and economic recovery as the Trump administration deepens engagement with Damascus

President Donald Trump on Monday, August 24, 2026, formally removed Syria from the United States’ State Sponsors of Terrorism list, ending a designation that had remained in place since 1979 and opening what Washington described as a new opportunity for Syria’s economic recovery.

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US Secretary of State Marco Rubio announced the decision after the completion of a mandatory 45-day congressional notification period, saying the move represented another significant step in the Trump administration’s efforts to give Syrians a path towards greater prosperity.

“Today, I authorised the formal rescission of Syria’s designation as a State Sponsor of Terrorism,” Rubio said in a statement.

The decision means Syria is no longer subject to prohibitions under the US Terrorism List Governments Sanctions Regulations, removing a major legal and financial obstacle to international engagement with the country. (EBS PublicNow)

The US Treasury Department said the measure was part of the administration’s broader sanctions relief programme for Syria and could encourage additional investment aimed at promoting political and economic stability.

“Treasury is following through on President Trump’s promise to give the Syrian people a chance at greatness,” Treasury Secretary Scott Bessent said.

“Today’s action will help foster additional investment in Syria to promote political and economic stability.” (EBS PublicNow)

The move also included the removal of Hay’at Tahrir al-Sham, commonly known as HTS, from the US list of Specially Designated Global Terrorist organisations.

The Treasury’s Office of Foreign Assets Control simultaneously removed HTS from its Specially Designated Nationals and Blocked Persons list. (EBS PublicNow)

The development marks a dramatic shift in Washington’s relationship with Damascus after decades of hostility and sanctions.

Syria had been designated a state sponsor of terrorism since 1979 because of its support for militant groups under former leaders Hafez al-Assad and Bashar al-Assad.

The designation carried significant restrictions on financial transactions, exports and other forms of international engagement.

The latest decision follows the collapse of Bashar al-Assad’s government and the emergence of President Ahmed al-Sharaa as Syria’s new leader.

Sharaa has sought to end the country’s international isolation and secure investment for reconstruction after nearly 14 years of civil war.

Washington began the formal process of removing Syria from the terrorism list on July 8, when Trump notified Congress of his intention to rescind the designation.

The decision was subject to a 45-day congressional review period before becoming final. (EBS PublicNow)

The rescission builds on other steps taken by the Trump administration to ease restrictions on Syria.

In July 2025, the State Department revoked HTS’s designation as a Foreign Terrorist Organisation, while subsequent measures provided wider sanctions relief. (EBS PublicNow)

The economic implications could be significant for Damascus, which faces enormous reconstruction needs following years of conflict.

Reuters reported that the removal eliminates a major barrier to investment and could help Syria reconnect with the international financial system.

The country has already attracted interest from major financial institutions, including discussions involving Bank of America, while Mastercard has explored initiatives to establish international payment infrastructure. (Reuters)

The decision, however, does not mean that all US restrictions on Syria have disappeared.

Washington continues to maintain other measures and has stressed that the broader fight against terrorism remains a priority.

The US State Department also continues to advise American citizens not to travel to Syria because of terrorism, unrest, kidnapping, hostage-taking, crime and armed conflict. (Travel.state.gov)

That distinction is important as Syria attempts to rebuild its economy while navigating an unsettled security environment.

The Trump administration has framed the policy shift as both an economic and diplomatic opening.

Rubio said the rescission followed Syria’s efforts to distance itself from international terrorism, while Washington has increasingly presented engagement with Damascus as part of a broader strategy for stability in the Middle East. (Reuters)

For Syria, the removal of the designation could provide a powerful boost to efforts to attract foreign capital, rebuild damaged infrastructure and restore links with global financial institutions.

For Washington, it represents a calculated departure from decades of isolation, with the administration betting that greater economic engagement can support stability while advancing US strategic interests in the region.

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The immediate challenge for Damascus will be turning the diplomatic breakthrough into tangible economic gains for a population still facing the consequences of prolonged conflict.