US removes Syria from state sponsor of terrorism list, revokes HTS designation

The United States has removed Syria from its list of state sponsors of terrorism and revoked the terrorist designation of Hayat Tahrir al-Sham, also known as al-Nusrah Front. The Treasury Department said the move is intended to support investment and help promote political and economic stability in Syria. It marks a significant shift in Washington's approach to the country after years of sanctions tied to the former Assad government.

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The announcement confirms a decision first revealed last month and follows a review process that had been pending in Congress. Treasury Secretary Scott Bessent said the action would help foster additional investment in Syria and was in line with President Donald Trump's promise to deliver sanctions relief. The department also said the change removes a major obstacle to foreign assistance, defence exports and financial transactions involving Syria.

The designation had been imposed during the rule of the ousted Assad regime and had long restricted Syria's access to international finance and trade. Syrian officials have portrayed the move as an important step toward reconnecting the country to the global economic system. The governor of Syria's central bank, Safwat Raslan, said it was a historic step and said the bank was working to build a modern and reliable financial system.

Finance Minister Mohammed Barnieh also welcomed the decision, according to the statement. The policy change comes after earlier sanctions relief in June 2025 and a further US announcement in July that Syria would be delisted from its terror list, citing efforts by Syria's new leadership to unify the country. It also follows the fall of Bashar al-Assad in December 2024, when HTS, then led by Ahmed al-Sharaa, helped drive the offensive that removed him from power.

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Since then, al-Sharaa has sought to present the new leadership as a partner for Western governments and investors. The decision is likely to matter beyond Syria's borders because it affects how banks, companies and governments assess the risks of doing business there. Removing the terrorism and state sponsor labels can ease legal and financial barriers, although the practical impact will depend on how quickly institutions respond and whether other restrictions remain in place.

It also signals continued US support for Syria's current leadership at a time when the country is trying to re-establish itself internationally. What remains unclear is how quickly investment will follow and whether the change will translate into broader economic relief on the ground. It is also not yet clear how other governments and international institutions will adjust their own policies in response.

The next developments to watch are whether Syrian officials can convert the decision into new financial flows and whether further sanctions measures are eased in the coming months.

#Syria #USTreasury #sanctionsrelief #HTS #AhmedalSharaa

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