The United States on Monday removed Syria from its list of state sponsors of terrorism, ending a designation that had remained in place for nearly five decades and imposed major restrictions on the country's economic and diplomatic engagement. The decision represents a significant shift in Washington's policy toward Syria and is expected to make it easier for foreign businesses and investors to engage with the country following years of sanctions and economic isolation.

Alongside the decision on Syria, the US Department of State revoked its designation of al-Nusrah Front, also known as Hay'at Tahrir al-Sham (HTS), as a global terrorist organisation. The move marks another major change in the American approach to Syria, where HTS emerged as a powerful armed group during the country's prolonged conflict. The organisation was previously associated with Al-Qaeda before later breaking away from the jihadist network.

The State Department's decision to remove Syria from the state sponsor list is particularly significant because the designation had restricted the country's access to international economic activity for decades. The US move could create greater opportunities for investment and commercial engagement while supporting efforts to stabilise Syria's economy. Washington has increasingly signalled a willingness to ease some restrictions as part of a broader strategy aimed at encouraging political and economic stability.

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The US Treasury Department also moved to provide sanctions relief following the decision. Treasury Secretary Scott Bessent said the measures would help encourage additional investment in Syria and promote political and economic stability. The department said the actions were consistent with President Donald Trump's commitment to provide sanctions relief to Syria, linking the latest decisions to the administration's broader policy shift toward Damascus.

Despite the lifting of the designation and related restrictions, Treasury stressed that the changes do not represent a retreat from US efforts to combat international terrorism. The department said the removal of restrictions on Syria does not alter its approach to countering global terrorism and reiterated that Washington would continue to hold individuals and organisations considered responsible for destabilising or criminal activities in Syria accountable.

HTS has undergone a significant transformation in its public positioning since the Syrian conflict began. The group was formerly known as the Al-Nusra Front and operated as Al-Qaeda's branch in Syria. In 2016, it announced that it was breaking ties with Al-Qaeda and subsequently sought to present itself as a more independent Syrian political and military organisation. Its past links to Al-Qaeda had nevertheless remained central to international assessments of the group for years.

The removal of Syria from the US terrorism list and the revocation of HTS's terrorist designation mark a major development after decades of confrontation and isolation. The decisions could encourage international investment and greater economic engagement with Syria, although the country's recovery remains dependent on wider political, security and economic conditions. Washington's latest actions indicate a significant recalibration of its Syria policy, combining sanctions relief and diplomatic flexibility with continued warnings that individuals and groups involved in terrorism or other destabilising activities will remain subject to US action.

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