President Donald Trump has signed an executive order rolling back most U.S. sanctions on Syria, a sweeping move intended to open the path for reconstruction and foreign investment following the overthrow of longtime Syrian leader Bashar al-Assad. The order, issued on Monday, lifts restrictions on entities considered essential to the country’s recovery and governance. The U.S. Treasury confirmed that hundreds of individuals and institutions were removed from its sanctions list as part of the decision.

The Syrian government welcomed the announcement. In a post on X, Foreign Minister Asaad Hassan al-Shaibani called it a historic opportunity for economic revival and reintegration into the global economy. He said the decision clears the way for the country to begin rebuilding after years of isolation and financial strangulation, noting that the sanctions had hampered Syria’s recovery and pushed its economy to the edge of collapse. Trump’s move follows through on a pledge he made during his visit to the Middle East in May, where he promised to back Syria’s stabilization efforts.

In a statement on Monday, Trump reiterated Washington’s commitment to a unified and peaceful Syria that does not harbor terrorism and protects all religious and ethnic groups. He stressed that a stable Syria would enhance regional peace and prosperity. Al Jazeera’s Mike Hanna, reporting from Washington, called the sanctions relief “wide-ranging,” emphasizing the magnitude of the policy shift after decades of U.S. restrictions on Syria dating back to the 1970s.

While most sanctions have been lifted, those targeting the former Assad regime, Islamic State (ISIS), and Iranian-aligned groups remain in place. Notably, the U.S. has yet to revoke all measures imposed under the Caesar Act, which enabled punishing sanctions for alleged war crimes during the Assad years. The Trump administration has directed agencies to assess whether conditions are suitable for lifting Caesar Act sanctions in the near future.

As part of the order, Trump tasked Secretary of State Marco Rubio with reviewing the terrorism designation of interim Syrian President Ahmed al-Sharaa. The U.S. will also reevaluate the classification of Hayat Tahrir al-Sham (HTS), a group led by al-Sharaa in the past, which evolved from the al-Qaeda-linked al-Nusra Front. Al-Sharaa, also known as Abu Mohammed al-Julani, had formally severed ties with al-Qaeda in 2016 and has led efforts to transform HTS into a more politically oriented rebel force.

Al-Sharaa’s ascent to power came after a surprise offensive in December 2024 that toppled Assad’s regime. Since then, the interim president has pledged inclusive governance and promised not to threaten regional stability. Despite these assurances, reports of attacks and abductions targeting Alawites - Assad’s sect - have raised concerns among human rights advocates.

Trump’s decision has broader diplomatic implications. Behind the scenes, the U.S. is in the early stages of discussing a potential security agreement between Syria and Israel. Though normalization is not on the table yet, American and Israeli officials say that the goal is to build confidence and gradually reduce tensions, especially along the volatile border areas.

The Israeli side has made clear that any future peace deal must include recognition of Israeli control over the Golan Heights, territory seized from Syria in the 1967 war and officially recognized by Trump as Israeli during his first term. Foreign Minister Gideon Saar emphasized that Israel will not relinquish the territory under any future deal, even as negotiations progress.

Israel is reportedly engaging Syria through several channels, including national security, foreign affairs, military contacts, and intelligence. However, Israeli officials have expressed the desire for the U.S. to take a more central role in the diplomatic process. Trump’s envoy to Syria, Tom Barrack, has maintained contacts with Syrian representatives since June and is expected to be part of continued exploratory talks.

While the discussions remain at the working level and do not yet involve President al-Sharaa, officials on both sides have suggested that a breakthrough is possible - albeit distant. The U.S. approach favors gradualism, beginning with limited security arrangements and potentially expanding toward full normalization. Senior officials have said the Trump administration is committed to mediating if both sides demonstrate willingness.

Israeli Prime Minister Benjamin Netanyahu is expected to visit the White House on July 7, where the Syrian file will be a central topic in his talks with Trump. Strategic Affairs Minister Ron Dermer is already in Washington for preliminary meetings with senior U.S. officials. A successful Syria-Israel agreement would mark a landmark diplomatic achievement and reshape dynamics in the region long shaped by enmity and war.

Sources:

• The White House official website
• Al Jazeera
• Axios