During US President Donald Trump's Gulf tour earlier this month, he announced that US sanctions on Syria would be lifted.
The news, which was followed by a 30 percent increase in the value of the Syrian pound, came as a surprise to many, particularly given the US president's previous hardline approach to Syria during his first term, during which he supported a new set of sanctions.
However, questions remain as to what this new step means for Syria, the region and the US, itself.
What are the sanctions imposed on Syria?
Syria has been under multiple sanctions since 1979, when it was designated by the US Congress as a "terrorist-sponsoring state", leading to an arms embargo and tight financial restrictions.
In 1986, the European Community added its own package of sanctions, similarly targeting arms sales and financial transactions, which were then lifted in 1994.
In 2004, a year after the US-led invasion of Iraq, further sanctions called the Syrian Accountability Act relating to arms and finance were imposed under the George W. Bush administration.
A year after the beginning of the Syrian uprising against then-President Bashar al-Assad in 2011, more sanctions were imposed on Syria, including petroleum imports. There were also individual sanctions targeted at the leaders and inner circle of the Syrian government. The European Union and other allies imposed similar sanctions at the time.
In 2019, during Trump's first term, the US imposed the Caesar Act, primarily composed of secondary sanctions (a deterrent for non-US citizens or entities wanting to do business in Syria) following reports of atrocities by the Syrian government.
In January, shortly before Trump's inauguration, a sanctions' waiver was offered for those working with the transitional government in Syria, which then the EU followed a month later by lifting energy sanctions on Syria.
Then, in April, the UK announced it was removing sanctions on Syria to help with reconstruction.
And in May 2025, during a tour of the Gulf, Trump announced that all sanctions on Syria would be lifted. The EU announced that they would follow suit, though they had already begun lifting sanctions on Syria in February.
As for targeted sanctions on senior Syrian government officials and their inner circle, those are expected to remain in place.
The sanctions themselves will take years to be completely removed, particularly those passed by Congress with bipartisan support. Still, with waivers, there could be relatively quick changes.
"In the interim, it is likely that the White House will issue executive orders waiving enforcement of US sanctions," David Lesch, a history professor at Trinity University in San Antonio, told The New Arab.
"While it will take some time for the average Syrian to notice a significant difference in their everyday lives, particularly as the Syrian financial system, ministerial capacity, and infrastructure will take some time to get back up to a level where the country can adequately absorb the benefits of the lifting of sanctions, some positive movement has already occurred," he said.
"The value of the Syrian pound rose very soon after President Trump announced the lifting of sanctions, petrol prices fell a bit, and countries and companies are now willingly and openly negotiating reconstruction contracts with Syria now that they are free of the fear of crossing the US Treasury and subjecting themselves to secondary sanctions," Lesch noted.
How have sanctions impacted Syrians?
The decades-long US-led sanctions on Syria have affected every aspect of daily life in the country, from people's ability to buy products, to making financial transactions, to travelling abroad.
Among the most damaging aspects of the sanctions on regular Syrians has been the fear of being punished for incorrectly following the rules, often leading to overcompliance, with relatives hesitating to rend remittances back home, students declining academic opportunities abroad and institutions rescinding study and work opportunities over uncertainty of what the sanctions entailed.
How will lifting sanctions impact Syria and the region?
Many already have high hopes for the end of sanctions in Syria.
The country currently has one of the world's highest poverty rates. After 14 years of conflict, more than 90 percent of Syrians live below the poverty line and 70 percent are dependent on aid.
This week, US Secretary of State Marco Rubio said he believed Syria could be "weeks away from full-scale civil war" and urged the country to work with Washington. Many experts agree that Syria has been in danger of falling into major conflict due to extreme poverty and sectarian tensions.
There are currently more than 6 million Syrians who have been externally displaced due to the recent conflict, and around twice that many living in the diaspora. Many are highly educated, and their return with their expertise could be a boon for Syria.
"If those things fall in line, we could have an emerging market," said Wa'el Alzayat, himself a Syrian immigrant to the US and CEO of Emgage, a Muslim advocacy group, speaking at a webinar on Wednesday. He suggested that Syrians should act quickly to get ahead of foreign firms seeking opportunities in the newly opened market.
Moreover, with the country's location bordering Lebanon, Palestine, Turkey, Iraq and Jordan, the rest of the region could benefit from their geographic proximity.
Some of the strongest advocates for reversing the sanctions have been countries in the region, including the Gulf and Turkey, which Trump noted in his recent trip.
What has Trump said about sanctions on Syria?
"After discussing the situation in Syria with the [Saudi] Crown Prince [Mohammed bin Salman] and also with President Erdogan of Turkey, who called me the other day and asked for a very similar thing ... I will be ordering the cessation of sanctions against Syria in order to give them a chance at greatness," Trump said during his stop in Saudi Arabia.
Trump described the sanctions as "crippling" and said they were no longer necessary.
"Now it is their time to shine. We are taking them all off. Good luck Syria. Show us something very special," he said.
The news was met by celebrations in Syria and around the world by the diaspora, many of whom haven't seen their home country in years.
At the time of his announcement, he said he was open to meeting the new interim Syrian president Ahmed al-Sharaa, which he did shortly afterwards. Sharaa, who came to power through leading an armed overthrow of Assad, had a $15 million bounty for his arrest. He is now meeting regularly with world leaders.
What are Trump's conditions for lifting sanctions?
Trump is widely known for being a transactional president. Sharaa has reportedly offered to grant US energy firms access to oil and gas reserves and has also suggested having a Trump Tower in central Damascus, what would likely be an attractive offer for Trump.
There have also been reports of an Ukraine-style mineral deal, wherein the US would take control of substantial quantities of precious minerals.
According to the World Atlas, Syria is rich in natural resources, including iron, ore, marble, gypsum, ore, crude oil and natural gas.
In addition to resources, Sharaa has reportedly expressed an openness to joining the Abraham Accords, a deal that would normalise relations with Israel and would therefore concede the Syrian-occupied Golan Heights to Israel. This would also mean an end to Syria's strategic relationship with Iran and likely an Israeli security presence in southern Syria.
Is there any opposition to removing sanctions on Syria?
Some leaders in Israel have firmly opposed the news of Trump's reversal of sanctions on Syria, while some US leaders, mainly on the left, have expressed scepticism over embracing a new Syrian leader who until recently was considered an extremist.
This week, US Senate Minority Whip dick Durbin of Illinois said he was open to the lifting of sanctions, though said his vote wouldn’t come cheap, suggesting he wanted to see more details before offering support for the move.
As for the Republicans, National Intelligence Director Tulsi Gabbard has expressed scepticism of a deal with Sharaa, though there's unlikely to be significant opposition by Republican members of Congress, given the party's general loyalty to Trump.
What challenges does Syria face?
Apart from the decades-long sanctions that have crippled its economy, and a dictatorship and war that have broken the country's social fabric. Syria continues to face a number of challenges.
There are signs of a continued anti-government insurgency on the coast and recent bombings by Israel.
General security concerns remain as people consider relocation and investment in Syria.