Trump Admin Makes Major Change To State Sponsor Of Terror List

The United States formally removed Syria from its list of state sponsors of terrorism, ending a designation that had remained in place since 1979 and clearing a major obstacle to foreign investment as the country attempts to rebuild after nearly 14 years of civil war.

Secretary of State Marco Rubio announced Monday that he had formally rescinded Syria’s designation following the completion of a mandatory 45-day congressional notification period. The Treasury Department simultaneously removed Islamist paramilitary group Hay’at Tahrir al-Sham (HTS) from its list of specially designated global terrorists. 

The decision marks a dramatic reversal in Washington’s relationship with Damascus following the fall of longtime Syrian dictator Bashar al-Assad in December 2024. Syria had originally been designated a state sponsor of terrorism in 1979 under Assad’s father, Hafez al-Assad, in large part because of the regime’s support for Palestinian militant organizations. 

“Rescinding Syria’s designation as an SST and HTS’ designation as an SDGT eliminates the final major barriers for private sector investment in Syria and promotes Syria’s economic recovery and reintegration into the global economy,” Rubio wrote in his announcement on X.

With Syria’s removal, only three countries remain on the U.S. State Sponsors of Terrorism list: Cuba, Iran, and North Korea. 

The State Department said the decision reflects actions taken by the government of Syrian President Ahmed al-Sharaa to distance itself from international terrorism. Over the past year, Syria has joined the Global Coalition to Defeat ISIS and conducted operations against ISIS, al-Qaeda, Hezbollah, and Iran-aligned groups, according to Rubio. 

The administration’s decision also follows President Donald Trump’s broader effort to dismantle the sanctions regime imposed on Syria during the Assad era. Trump signed an executive order in June 2025 directing the revocation of the Syria sanctions program, and formally initiated the process of removing Syria from the terrorism list in July.

The designation carried significant restrictions on U.S. foreign assistance, defense exports, and certain financial transactions. Its removal, therefore, gives international companies and financial institutions substantially greater ability to conduct business with Syria. Treasury Secretary Scott Bessent said the move would “help foster additional investment in Syria to promote political and economic stability.” That investment could be particularly significant as Syria faces the enormous task of rebuilding infrastructure destroyed during its civil war. In 2025, the World Bank estimated the cost of Syria’s postwar reconstruction at roughly $216 billion.

Syrian officials have characterized the removal as a crucial step toward reconnecting the country with the international financial system. Syrian Foreign Minister Asaad al-Shibani said before the announcement that lifting the designation would remove what he described as the “last obstacle” to investment and economic activity in Syria. 

The geopolitical stakes could extend beyond Syria’s economic recovery. Syria’s geographic position on the Mediterranean also gives it potential importance to regional energy and trade routes, particularly as disruptions around the Strait of Hormuz continue to affect the movement of oil and gas.

Syria’s Mediterranean ports could eventually provide an alternative route for regional energy exports, although taking advantage of that opportunity would require substantial investment in roads, ports, utilities, and other infrastructure devastated during the war.

The move also represents a remarkable transformation for al-Sharaa himself. The Syrian president previously led HTS, which had been designated as a terrorist organization by the United States. Washington formally revoked HTS’ Foreign Terrorist Organization designation in July 2025 and has now removed its separate designation as a Specially Designated Global Terrorist. 

Al-Sharaa led the rebel offensive that toppled Assad in December 2024 and subsequently moved to establish a new Syrian government. The Trump administration has increasingly engaged with him as a potential partner, with Trump meeting the Syrian leader and publicly supporting the country’s reintegration into the international community.