U.S. to Drop Syria's Terror Sponsor Status, Clearing Path for Investment

An anonymous U.S. official confirmed that the government intends to formally lift Syria's State Sponsor of Terrorism status on Monday, after the congressional review window closed without any attempt to block the action. The designation, imposed in 1979, restricted American foreign assistance, defense sales and the export of certain dual-use goods to Syria. This step follows a meeting between Donald Trump and Syrian counterpart Ahmed al-Sharaa on the sidelines of a NATO summit in Ankara, where Trump pledged to remove all sanctions on the new Syrian administration that overthrew Bashar al-Assad in December 2024.

Over the past year, the Trump administration has steadily eased sanctions, including revoking the terror label on Sharaa's former militant group and collaborating with Congress on the Caesar Act. The State Department's list also includes Cuba, Iran and North Korea. A second U.S. official indicated the Commerce Department could issue updated export-control guidance by month’s end, though the process may take longer. The removal is expected to open the door for greater commercial investment in Syria.