US lifts Syria's state sponsor of terrorism designation
The US has officially removed Syria from its state sponsors of terrorism list, clearing a major hurdle for investment and financial reintegration.
The United States has formally removed Syria from its list of state sponsors of terrorism, a move that Damascus has long described as the final major obstacle to foreign investment and economic recovery. The decision, posted on the US Treasury's website, took effect after a 45-day congressional review period that began when President Donald Trump notified Congress of his intention in early July.
Secretary of State Marco Rubio said the action recognizes the Syrian government's positive steps and commitments under President Ahmed al-Sharaa to distance the country from international terrorism. Syrian Foreign Minister Asaad al-Shibani said the removal should help reconnect Syria to the global financial system and boost investment, stating that there is no longer any obstacle to doing business and rebuilding economic life in the country.
Syria had been on the list since 1979, when Washington accused the government of then-President Hafez al-Assad of supporting militant groups. The designation remained in place throughout the rule of his son, Bashar al-Assad, who was overthrown by rebels led by Sharaa in December 2024.
The removal leaves Cuba, Iran, and North Korea as the only countries still designated as state sponsors of terrorism. The US also lifted the designation of the Nusrah Front as a Specially Designated Global Terrorist organization.
The terrorism listing had remained a significant deterrent for banks and investors even after Washington dismantled its broader sanctions program on Syria in July 2025. While the US Treasury has since allowed American financial institutions to provide services to Syria and process payments involving Syrian banks, the terrorism designation continued to pose legal and compliance risks for firms.
Signs of growing interest have emerged ahead of the removal. Syria's finance ministry said it held talks with Bank of America executives over potential cooperation, and Mastercard has announced plans to work with QNB Group and Syria's central bank to prepare infrastructure for international card payments.
The delisting follows months of negotiations between Damascus and Washington. Trump notified Congress of his decision after meeting Sharaa in Ankara in July, telling the Syrian president he had promised to remove all barriers preventing Syria from rebuilding. Damascus also agreed to drastically reduce imports of Russian oil during discussions over the designation, according to sources familiar with the talks.
Washington has praised cooperation by Sharaa's government against Islamic State and said easing restrictions is intended to give Syria an opportunity to stabilise, attract investment, and rebuild.