The United States has removed Syria from its list of state sponsors of terrorism, ending a designation that had been in place since 1979 and lifting what Washington described as the "final major barriers" to private sector investment in the war-scarred country. Secretary of State Marco Rubio said the decision recognised "positive steps" taken by the Syrian government to distance itself fully from international terrorism. The move took effect after a mandatory 45-day Congressional review period, which began when President Donald Trump formally notified Congress of his intent in July following a meeting with Syrian President Ahmed al-Sharaa in Ankara.

Alongside Syria's removal from the list, the US also revoked its designation of Hayat Tahrir al-Sham (HTS) as a foreign terrorist organisation. HTS — formerly known as al-Nusra Front, which was al-Qaeda's affiliate in Syria — severed ties with the jihadist network in 2016 and subsequently softened its public image. In late 2024, HTS led the rebel offensive that toppled longtime president Bashar al-Assad, whose family had ruled Syria for decades. Al-Sharaa, once wanted by the US with a bounty on his head, now leads Syria's transitional administration. With Syria's removal, only Cuba, North Korea, and Iran remain on the US state sponsors of terrorism list.

Syrian President al-Sharaa welcomed the decision, saying his country was "shaking off a dark burden," while Foreign Minister Asaad Hassan al-Shaibani called it a "historic step" and pledged to continue working toward transparency and mutual respect with the international community. The governor of Syria's central bank described the move as returning Syria "to its natural place in the global economic system." Treasury Secretary Scott Bessent said the action would "foster additional investment in Syria to promote political and economic stability," though officials stressed that targeted sanctions against Assad-era figures, human rights violators, and groups linked to Islamic State and Iranian proxies remain in force.

The delisting is the culmination of months of negotiations between Damascus and Washington over economic and foreign policy commitments. Among the reported concessions, Damascus agreed to significantly reduce its imports of Russian oil. The Trump administration had already lifted broader US sanctions on Syria in July 2025, and the state sponsor designation had remained the last significant legal obstacle deterring international banks and investors from entering the Syrian market — a country seeking billions of dollars in reconstruction funding after nearly 14 years of devastating civil war.

Why this matters: Syria's removal from the terrorism list signals a dramatic geopolitical realignment. Washington is openly seeking to draw Damascus into its orbit rather than ceding influence to Russia or China, both of which backed Assad during the conflict. Yet significant risks remain. Syria is still far from stable, lacks a fully representative government, and sits at the centre of rising tensions between neighbouring Israel and Turkey. Whether the economic opening translates into tangible reconstruction and political progress will depend on whether Syria's new leadership can consolidate security and deliver governance that meets the expectations of a population exhausted by war.