WASHINGTON — The United States has formally removed Syria from its list of State Sponsors of Terrorism, ending a designation that had been in place since 1979 and marking one of the most significant shifts in Washington’s policy toward Damascus in decades.
The decision, authorized by U.S. Secretary of State Marco Rubio on August 24, 2026, followed the completion of a mandatory 45-day congressional notification period. Washington also removed Hay’at Tahrir al-Sham (HTS) from its designation as a Specially Designated Global Terrorist organization.
The moves represent another major step in the Trump administration’s effort to reduce Syria’s international isolation and encourage economic recovery following more than a decade of devastating conflict.
A major shift in U.S.-Syria relations
Syria had been designated a U.S. State Sponsor of Terrorism since December 1979. The designation imposed restrictions affecting areas including U.S. foreign assistance, defense exports and certain financial transactions, creating significant obstacles for international businesses and financial institutions considering dealings with Syria.
Reuters reported that the removal is expected to eliminate a major barrier to foreign investment and Syria’s reintegration into the international financial system. Syrian officials have described the move as an important opportunity for reconstruction and economic development.
U.S. Treasury Secretary Scott Bessent said the action is intended to encourage investment and promote political and economic stability in Syria. Treasury nevertheless stressed that the change does not mean Washington is abandoning efforts to combat terrorism or hold individuals and groups it considers dangerous accountable.
Why HTS is part of the story
The U.S. decision also removed the terrorist designation of Hay’at Tahrir al-Sham, formerly known as the Nusrah Front or al-Nusra Front.
HTS was previously affiliated with al-Qaeda in Syria before formally breaking with the organization in 2016. The group later became the dominant force in the coalition that overthrew longtime Syrian President Bashar al-Assad in December 2024. Its former leader, Ahmed al-Sharaa, subsequently became Syria’s president.
The change has drawn international attention because of al-Sharaa’s history with jihadist groups and the dramatic transformation of his political role. His government is now seeking international recognition, investment and support for rebuilding a country devastated by years of war.
What the decision could mean for Syria
The removal of the terrorism designation could make it easier for companies, banks and investors to consider doing business in Syria by reducing some of the legal and compliance risks associated with the previous designation. Reuters reported that financial institutions and payment companies have already been exploring opportunities connected to Syria’s economic reopening.
The move follows earlier U.S. sanctions relief. The Trump administration began dismantling major Syria-related economic restrictions in 2025, while retaining sanctions against Assad-era figures and other actors accused of human-rights abuses, drug trafficking, terrorism or destabilizing activities.
That distinction is important: removing Syria from the State Sponsors of Terrorism list does not mean every U.S. sanction connected to Syria has disappeared.
The United States continues to maintain targeted measures against certain individuals and entities. Washington has also continued counterterrorism operations and sanctions targeting ISIS financial networks, demonstrating that its broader terrorism policy toward Syria remains active.
A geopolitical reset
The decision comes as Washington and Damascus move toward closer diplomatic and economic engagement under al-Sharaa’s government.
President Donald Trump had announced in July that he intended to remove Syria from the terrorism sponsor list, saying the United States wanted to remove barriers to reconstruction and investment. Congress was given 45 days to review the decision before it took effect.
Reuters has also reported that Syria signaled a willingness to significantly reduce imports of Russian oil amid discussions with Washington, highlighting the wider geopolitical implications of Syria’s changing relationships with the United States and Russia. U.S. officials, however, said reducing Russian oil imports was not formally a condition for removing the terrorism designation.
What happens next?
For Syria, the immediate challenge is turning diplomatic and legal changes into tangible economic recovery.
The country remains heavily damaged by years of war, with infrastructure, financial institutions and public services requiring substantial investment. Syrian officials have welcomed the U.S. decision as a potential gateway to greater international investment, technology and integration with global markets.
For Washington, the move represents a calculated bet that greater economic engagement can help stabilize Syria while maintaining targeted pressure against terrorist organizations and individuals considered security threats.
The bigger question now is whether the removal of the terrorism designation will translate into real investment, reconstruction and improved living conditions for Syrians — or whether political and security risks will continue to keep international investors cautious.
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