Syria Sanctions Lifted as Trump Administration Seeks Middle East Stability Post-ISIS Defeat

In a bold move signaling a shift in U.S. foreign policy, President Donald Trump announced on May 13, 2025, the lifting of long-standing sanctions on Syria. The decision, made during a speech at the U.S.-Saudi Investment Forum in Riyadh, aims to foster economic recovery in Syria and promote stability in the Middle East following the defeat of ISIS and the fall of the Assad regime in December 2024. The announcement has sparked celebration in Syria, cautious optimism among regional allies, and debate in Washington about its implications for U.S. interests. With Syria emerging from over a decade of civil war, the Trump administration sees this as a chance to support a new government, counter rival powers like Russia and Iran, and open opportunities for American businesses in a region poised for rebuilding.

A Historic Policy Shift

The decision to lift sanctions marks a significant departure from decades of U.S. policy toward Syria, which has been under sanctions since 1979 when it was designated a state sponsor of terrorism. Additional measures, including the Caesar Syria Civilian Protection Act of 2019, signed into law by Trump during his first term, further tightened restrictions on the Assad regime, crippling Syria’s economy. These sanctions, while intended to pressure Bashar al-Assad’s government, also devastated ordinary Syrians, with 90% of the population now living in poverty and the country’s GDP plummeting from $252 billion before the war to $9 billion in 2021, according to World Bank estimates.

Trump’s announcement came during a four-day Middle East tour focused on securing investment deals and strengthening ties with Gulf allies like Saudi Arabia, Qatar, and the United Arab Emirates. Speaking in Riyadh, he declared, “I will be ordering the cessation of sanctions against Syria in order to give them a chance at greatness.” The move was spurred by discussions with Saudi Crown Prince Mohammed bin Salman and Turkish President Recep Tayyip Erdoğan, who both advocated for sanctions relief to stabilize Syria under its new leadership. On May 24, the U.S. Treasury Department issued a general license, GL25, authorizing transactions with Syria’s interim government, central bank, and state-owned enterprises, effectively lifting many restrictions. The State Department also issued a 180-day waiver under the Caesar Act to facilitate humanitarian aid and investment in essential services like electricity, water, and sanitation.

Why Lift Sanctions Now?

The timing of the sanctions relief aligns with significant changes in Syria’s political landscape. The Assad regime, long backed by Iran and Russia, collapsed in December 2024, ending a brutal civil war that killed over 300,000 people and displaced millions. The new interim president, Ahmed al-Sharaa, a former leader of the rebel group Hay’at Tahrir al-Sham (HTS), has positioned himself as a moderate seeking to rebuild Syria and integrate it into the global economy. Trump met al-Sharaa in Riyadh on May 14, describing him as a “young, attractive guy. Tough guy. Strong past. Fighter,” and expressing hope that he could unify and stabilize Syria. The lifting of sanctions is seen as a way to support al-Sharaa’s government, which has made early efforts to protect minorities, crack down on drug trafficking, and distance itself from Iranian influence.

The Trump administration views this as a strategic opportunity to counter Russia and China, which could exploit Syria’s economic collapse to deepen their influence. By easing sanctions, the U.S. aims to enable American companies to compete for contracts in Syria’s estimated $400 billion reconstruction effort, creating jobs and strengthening ties with Gulf allies who are eager to invest. The move also aligns with broader U.S. goals of reducing refugee flows, weakening Iran-backed groups like Hezbollah, and promoting regional stability post-ISIS. As Daniel B. Shapiro, a former U.S. ambassador to Israel, noted, lifting sanctions could “secure a long-term U.S. victory in Syria” by fostering a prosperous, stable nation that aligns with Western interests.

Challenges and Risks

While the announcement was met with jubilation in Damascus, with Syrians celebrating in the streets and the Syrian pound gaining 60% in value overnight, experts warn that the road to economic recovery is complex. Sanctions are not a simple switch; unraveling them involves navigating multiple layers, including executive orders, export controls, and congressional mandates like the Caesar Act. Some measures, such as the terrorist designation of HTS, require further action to remove, and Syria’s largest telecom company and key interim government figures remain sanctioned. Karam Shaar, a Syrian economist, emphasized that while the policy shift is “a huge step forward,” tangible economic benefits could take up to a year to materialize due to the need for banking reforms and investor confidence.

The decision has also raised concerns. Israel, a key U.S. ally, opposes the move, fearing a stronger Syrian government could threaten its security, particularly near the Golan Heights, where Israeli forces have expanded operations. Recent Israeli airstrikes in Syria, including near Damascus, reflect these tensions. Additionally, al-Sharaa’s past ties to al-Qaeda, despite his group’s break with the organization in 2016, raise questions about his government’s intentions. Reports of revenge killings against Alawite minorities in March 2025 have heightened fears that the new government may struggle to protect religious and ethnic groups, a key U.S. condition for sanctions relief.

In Washington, the announcement caught some Treasury officials by surprise, and congressional approval is needed to fully repeal certain sanctions. Senators like Lindsey Graham have expressed cautious support but stressed the need for coordination with allies, particularly Israel, to address security concerns. Critics argue that without clear conditions, such as Syria joining the Abraham Accords or expelling foreign fighters, the U.S. risks losing leverage over al-Sharaa’s government.

Implications for Middle East Stability

The lifting of sanctions is part of a broader Trump administration strategy to reshape U.S. engagement in the Middle East. During his trip, Trump secured over $2 trillion in investment deals with Gulf nations, including a $600 billion commitment from Saudi Arabia. He also urged al-Sharaa to prevent an ISIS resurgence, deport foreign militants, and take over ISIS detention camps, signaling expectations for Syria to align with U.S. counterterrorism goals. The White House emphasized that the U.S. will monitor Syria’s progress to ensure it does not become a safe haven for terrorists.

The move has drawn praise from regional leaders and the United Nations, which called sanctions relief “imperative” for delivering essential services and reviving Syria’s economy. Neighboring countries like Turkey, hosting 3.2 million Syrian refugees, see a stable Syria as critical to addressing refugee flows and regional security. However, the temporary nature of the Caesar Act waiver and the complexity of remaining sanctions could deter long-term investment, as businesses fear penalties if measures are reinstated.

What’s Next for Syria and the U.S.?

For Syrians, the lifting of sanctions offers hope after years of war and economic hardship. The new government has ambitious plans to rebuild infrastructure, restore services, and attract foreign investment, but success depends on its ability to maintain security and gain international trust. Al-Sharaa’s invitation to American companies to invest in Syrian oil and gas signals openness to Western partnership, but challenges like ongoing violence and banking restrictions remain.

For the Trump administration, the policy shift is a calculated risk to stabilize a key Middle Eastern nation while advancing U.S. economic and security interests. Secretary of State Marco Rubio’s upcoming meeting with Syria’s foreign minister in Turkey will be crucial for outlining next steps, including potential conditions for further sanctions relief. As Mona Yacoubian of the Center for Strategic and International Studies noted, the decision could “open a new chapter in U.S.-Syrian relations” if implemented effectively.

The lifting of sanctions on Syria represents a pivotal moment for the country and the region. While it offers a chance for economic revival and stability, the path forward is fraught with challenges. By betting on Syria’s new leadership, the Trump administration is taking a bold step toward a post-ISIS Middle East, but its success will depend on careful diplomacy, regional cooperation, and sustained commitment to rebuilding a war-torn nation.

Rajendra Chandre