The US has delisted Syria as a state sponsor of terrorism and revoked its designation of the Hay'at Tahrir al-Sham group as a terrorist organisation, moves that officials say will facilitate investment and economic recovery in the country.

The United States lifted its decades-long designation of Syria as a state sponsor of terrorism on Monday, alongside removing the Hay'at Tahrir al-Sham (HTS) from its global terrorist organisations list. The Treasury Department announced corresponding sanctions relief in conjunction with the move. US officials characterised the delisting as an effort to support Syria's economic stabilisation and integration into international markets following the country's civil war.

Syria's government, now led by HTS founder Ahmed al-Sharaa after the group's December 2024 overthrow of long-time ruler Bashar al-Assad, welcomed the developments. Syrian Foreign Minister Assad al-Shaibani called the delisting a "historic milestone" reflecting the new state's commitment to international peace, while Finance Minister Mohammed Barnieh described it as opening doors to global economic integration and investment. The US State Department indicated the move would eliminate barriers for private sector investment in Syria.

The delisting follows an initial announcement of intent in July and a meeting between US President Donald Trump and Sharaa at a NATO summit in Turkey. Treasury Secretary Scott Bessent stated the action aligned with Trump's promise of sanctions relief to Syria. However, the Treasury emphasised that the removal of restrictions "does not change" its commitment to counterterrorism efforts and accountability for "bad actors" in the country.

HTS, formerly known as al-Nusra Front and previously aligned with Al-Qaeda before breaking ties in 2016, has sought to rebrand itself under Sharaa's leadership as a unifying political force. Syria faces significant economic challenges following over 13 years of conflict that rights groups estimate killed more than half a million people.