On 24th August 2026, the rescission of Syria’s designation as a “State Sponsor of Terrorism” by the United States of America was formally authorised by the US Secretary of State, Marco Rubio. The decision follows the process initiated last month, lifting manifold sanctions on Syria and reforging the relations between the two countries. These measures are expected to economically benefit the Syrian people.
Syria, while under the prior administrations, was designated as such by the U.S. in 1979. The sanctions imposed in line with this decision included restrictions on U.S. foreign assistance and exports, restrictions on financial activities and travel, and a ban on defence exports and sales. Sanctions began to be eased after the formation of a transitional government in 2025 under the leadership of the interim president, Ahmed al-Sharaa, as international institutions also sought progress in the economic and humanitarian situation in Syria.
The lifting of sanctions continues in view of Syria’s commitments to fight terrorism and safeguard human rights. For instance, the government guaranteed complete humanitarian access and joined the Global Coalition to Defeat ISIS. The 2025 U.S. Executive Order “Providing for the Revocation of Syria Sanctions” further lent momentum to the process of relieving sanctions, particularly by halting the Syria Sanctions Program. A general license was also issued for transactions by the interim government and institutions. Sanctions were retained on individuals and organisations linked to chemical weapons, terrorist networks, and violations of human rights.
With Syria’s recent delisting, flow of investments into the country can begin, and Syria’s footprint in the global economy and its mechanisms can also increase. President Ahmed al-Sharaa remarked in a video message upon the delisting, “Today, Syria is shaking off a dark burden… to embark on a path of development, reconstruction, and rebuilding.” The next day, as he made a payment with his Visa card, he witnessed the removal of transactional restrictions and the country’s inclusion in the global banking system, putting it on the path of economic recovery.
