US Removes Syria from Terrorism List, but Sanctions Risks Remain

US Rescission of Syria’s Designation as a State Sponsor of Terrorism – on 24th August 2026 the United States Secretary of State Marco Rubio formally removed Syria’s designation as a State Sponsor of Terrorism. 

In practical terms, designation as an SST has potentially serious economic repercussions by restricting US economic support/assistance, banning military sales/exports, imposing extra barriers to the sale/export of dual-use goods, and creating significant banking barriers. 

The removal of Syria from the US SST List is the latest in a series of actions taken by the US to open and encourage trade relations with Syria, including the repeal of six executive orders on 30th June 2025, and of the Caesar Act on 18th December 2025, which significantly restricted activities by both US and non-US persons alike. 

The combined effect should be to ease trade and related activities. 

However, sanctions remain in place in relation to designated individuals, terrorist organisations and certain dealings involving Russia and Iran. This action does not eliminate the need to perform high levels of due diligence in relation to trade counterparties, and cargoes.

In addition, although the EU and UK have also eased sanctions against Syria in recent months, various measures remain in place, notably: sanctions against individuals and entities linked to the former Assad regime, restrictions on arms and military-related goods, and on goods and technology that could be used for internal repression.