Trump’s Sanctions Rollback on Syria Ushers in New Era of Conditional Engagement

In a dramatic pivot in Middle East policy, President Donald Trump announced on May 13, 2025, that the United States would lift all sanctions on Syria, contingent upon the country’s compliance with strict counterterrorism finance measures. The statement, delivered at the Saudi–U.S. Investment Forum in Riyadh, marked a historic departure from over a decade of economic isolation imposed on Damascus. Flanked by Saudi Crown Prince Mohammed bin Salman and Turkish President Recep Tayyip Erdoğan, Trump cast the move as a strategic opportunity to reintegrate Syria into the global economic system while demanding an aggressive crackdown on extremist funding.

The lifting of sanctions represents a profound shift in American posture. For years, punitive measures like the Caesar Syria Civilian Protection Act and multiple executive orders had targeted Syrian government assets, frozen financial transactions, and blocked energy exports, aiming to undermine the rule of Bashar al-Assad. But Assad’s ouster in December 2024 and the rise of interim President Ahmed al-Sharaa opened a new chapter. “Those sanctions served an important purpose—but now it’s time to give Syria a chance at greatness, provided they show concrete action against terror-finance networks,” Trump declared in Riyadh, drawing applause from regional leaders.

The U.S. Treasury will begin delisting Syrian state-owned enterprises and government ministries from the Specially Designated Nationals list, restoring access to international banking systems and lifting restrictions on SWIFT transfers. This clears the path for international financial institutions, aid agencies, and private investors to resume engagement with Syria. However, the Biden—now Trump—administration’s message remains clear: any sign that Damascus is not dismantling funding pipelines to terror groups such as Hayat Tahrir al-Sham could result in an immediate reinstatement of sanctions.

Behind the scenes, the announcement followed weeks of high-stakes diplomacy. According to the Associated Press, Trump presented President al-Sharaa with a detailed set of preconditions during closed-door sessions in Riyadh. These included dismantling financial conduits to ISIS affiliates, compelling Syrian banks to report suspicious activity, and granting U.S. and Gulf intelligence agencies access to monitor compliance. Erdoğan, intent on halting cross-border movements of militants and reducing the refugee burden on Turkey, lent his support to the initiative. Meanwhile, Saudi Arabia—keen to secure its foothold in post-war Syrian reconstruction—demanded “verifiable assurances that Gulf investments would not be diverted to extremist causes.”

The resulting trilateral accord represents a rare alignment of regional powers. Legal instruments like the Global Magnitsky Act and the International Emergency Economic Powers Act provide President Trump the authority to snap sanctions back into place should Syria fall short of its promises. State Department officials confirmed that Secretary of State Marco Rubio is scheduled to meet Syria’s foreign minister in Ankara to “finalize monitoring protocols and ensure ongoing cooperation.”

With the sanctions rollback, Syria must now undertake the arduous process of reconstruction. U.N. Secretary-General António Guterres welcomed the development, stressing that “sanctions relief is essential to reestablish basic services—health care, education, water—and to fund rebuilding projects,” but issued a warning: success will depend entirely on financial transparency and responsible governance.

Experts have outlined a three-pronged strategy for Syria’s economic recovery. The first stage prioritizes humanitarian needs—unfreezing public funds to pay salaries, import medicines, and stabilize electrical infrastructure. In the mid-term, reconstruction efforts will require contracting Gulf and European companies to rebuild essential infrastructure, from roads and hospitals to schools and water treatment plants—an investment projected to surpass $50 billion over five years. Long-term stability, analysts argue, will depend on Syria’s ability to attract diaspora capital, create special economic zones, and integrate into regional trade mechanisms to reinvigorate agriculture and light industry.

The announcement triggered a wave of optimism across Syrian cities. In Aleppo and Homs, thousands took to the streets waving Syrian and Saudi flags, chanting slogans of hope and national renewal. Speaking to Al Arabiya TV, Syria’s economy minister Mohammad Nidal al-Shaar said, “The path is now clear: we will see funds flow, jobs multiply, and lives improve”—but he also offered a sober caveat: “this relief comes with the sober responsibility to ensure no penny aids terror.”

President Trump’s landmark policy reversal is a high-stakes bet that economic inclusion can promote stability and suppress extremism. By attaching stringent counterterrorism benchmarks to sanctions relief and coordinating efforts with Gulf and NATO allies, the administration hopes to use financial carrots and sticks to shape Syria’s post-Assad trajectory. The coming months will reveal whether Damascus honors its commitments, whether oversight mechanisms prove effective, and whether this gamble on engagement delivers a durable path to Syrian recovery.

By fLEXI tEAM