Explainer: Which US sanctions on Syria were lifted and what comes next?

The US has officially ended the vast majority of sanctions on Syria, following an executive order signed by President Donald Trump on Monday.

The move comes more than six months after the fall of dictator Bashar al-Assad, whose decades-long rule collapsed in December 2024 after a rebel offensive led by Ahmed al-Sharaa seized Damascus.

While Syria's new leadership has been calling for sanctions relief since taking power, the decision to fully dismantle the sanctions regime marks a major shift in US policy, one that carries profound implications for the country’s reconstruction, regional diplomacy, and domestic stability.

The New Arab looks into what the sanctions were, why they were left in place after the fall of Assad and what the impact of their lifting will be on Syria. 

What were the sanctions?

US sanctions on Syria have evolved over decades, going back to 1979 when Syria was named a "state sponsor of terrorism".

However, the most severe sanctions came during the Syrian civil war, beginning in 2011. As Assad's regime launched a brutal crackdown on civilian protesters, the Obama administration froze Syrian government assets, banned oil exports, restricted financial transactions, and blacklisted hundreds of officials and business figures.

The 2019 Caesar Syria Civilian Protection Act codified many of these sanctions into US law, making them difficult to reverse without Congressional approval. These measures targeted sectors critical to reconstruction, including energy, finance, and transport.

Why were they implemented?

The sanctions were imposed as a response to widespread human rights abuses and war crimes committed by the Assad regime. These included the use of chemical weapons, mass detentions and torture, aerial bombardments of civilian areas, and the systematic starvation of besieged populations.

Washington's goal was to isolate Assad diplomatically and economically, pressure him into political reform, and deter foreign governments from funding Syria’s reconstruction while the regime remained in power. Over time, the sanctions evolved into a broader tool to limit Iran's influence in Syria and to constrain Hezbollah, Russia, and other actors operating within Syrian territory.

The impact on Syria

The sanctions devastated the Syrian economy.

With limited access to foreign capital and essential imports, the country’s financial sector collapsed. The Syrian pound lost over 90% of its value, poverty skyrocketed, and shortages of medicine, fuel, and food became routine. International banks refused to process Syrian transactions for fear of running afoul of US restrictions, effectively isolating the country from the global financial system.

Critics argue the sanctions exacerbated humanitarian suffering, with many NGOs warning they hindered aid delivery and reconstruction even in areas not controlled by Assad. Syria's new government has said the lingering sanctions made it nearly impossible to pay civil servants or begin the process of rebuilding shattered infrastructure.

Why the sanctions remained after Assad fell

Despite the fall of Assad in late 2024, the sanctions remained in place into mid-2025. Part of this was legal: many restrictions had been enshrined in legislation like the Caesar Act and could not be lifted by executive order alone. But there were also political concerns. Syria’s new president, Sharaa, was once affiliated with the Salafi jihadist group Jabhat al-Nusra, a former al-Qaeda affiliate.

Although he severed ties in 2016 and subsequently pledged inclusive governance, his rise prompted unease in Washington.

Reports of brutal revenge attacks on members of the Alawite minority and continued instability further delayed relief. It was only after months of lobbying by regional allies, including Saudi Arabia, Qatar and Turkey, that the White House moved to act.

Trump had promised during a May visit to Riyadh to lift sanctions if Syria committed to regional peace and began a credible post-Assad transition.

What the lifting means

Trump's executive order cancels five core sanctions executive orders and directs federal agencies to waive other restrictions. More than 500 individuals and entities have been removed from the Specially Designated Nationals (SDN) list, including major Syrian banks and companies critical to infrastructure and rebuilding.

The US Department of Commerce will review export controls that have blocked Syria from accessing key technologies, including international banking systems like SWIFT. The State Department has been tasked with reviewing Syria's designation as a state sponsor of terrorism and assessing the status of Hayat Tahrir al-Sham (HTS), the group once led by Sharaa.

However, not all sanctions are gone. The order retains restrictions on Bashar al-Assad, his relatives and associates, chemical weapons actors, Captagon traffickers, Iranian proxies, IS, and al-Qaeda. In fact, a new list of 139 individuals and entities connected to the old regime has been published to underscore Washington’s continued commitment to accountability.

The US Treasury insists this is not a blank cheque: financial institutions are warned they still risk penalties if they engage with those still under sanction. But the lifting of the main sanctions programme is expected to open Syria to international commerce, regional investment, and aid flows long frozen by Washington's blockade.