Trump Lifts Syria Sanctions After Assad’s Fall: A New Chapter in Middle East Diplomacy

Decades of Isolation and Devastation

Map of Syria

Since 1979, Syria has endured a complex web of U.S. sanctions, imposed after the country was designated a State Sponsor of Terrorism. These restrictions intensified over time—most notably in 2004 and 2011—amid Syria’s increasing authoritarianism and the violent repression of uprisings during the Arab Spring. By 2019, the Caesar Syria Civilian Protection Act imposed the harshest measures yet, targeting President Bashar al-Assad and his regime with asset freezes, travel bans, and sweeping bans on international business and banking transactions.

What Is the Caesar Syria Civilian Protection Act?

The Caesar Act is named after a Syrian military defector codenamed “Caesar” who smuggled out tens of thousands of photographs documenting mass torture and death inside Assad’s prisons.

Signed into law in December 2019, the Caesar Act was designed to:

• Punish the Assad regime for crimes against humanity and war crimes.

• Target Syria’s economic enablers, including Russia, Iran, and any businesses supporting Assad.

• Isolate Syria’s economy by restricting foreign investment and aid reconstruction.

Key Provisions:

• Asset freezes on individuals and entities aiding the Assad regime.

• Travel bans on Syrian officials and their enablers.

• Broad restrictions on any international companies or governments attempting to invest in Syria’s energy, construction, or engineering sectors.

• Prohibitions on financial institutions doing business with the Central Bank of Syria.

The Act was not just a symbolic gesture—it had teeth. It effectively deterred countries and companies worldwide from rebuilding Syria or conducting any economic activity there, fearing secondary U.S. sanctions.

These sanctions paralyzed the Syrian economy. International banking became inaccessible. Money transfers were blocked. Foreign companies pulled out, and basic goods disappeared from store shelves. The effects were crippling: over 90% of Syrians now live in poverty, and the country’s economy has shrunk to one-quarter of its prewar output.

Against this backdrop of economic collapse and humanitarian despair, President Donald Trump’s decision on May 13, 2025, to lift all U.S. sanctions on Syria marks a seismic shift in U.S. foreign policy—and potentially in the region’s geopolitical balance.

President Trump and Saudi Crown Prince Mohammed bin Salman

The Turning Point: Assad’s Fall and the Rise of a New Syria

The fall of the Assad regime in December 2024 was a watershed moment. After more than a decade of war and widespread atrocities, the collapse of Assad’s grip opened the door to a new political era. Leading the transitional government is Ahmed al-Sharaa, formerly known as Abu Mohammad al-Jolani, a one-time al-Qaeda affiliate turned national leader.

Al-Sharaa’s past is controversial:

• He joined al-Qaeda in Iraq in the early 2000s and was imprisoned by U.S. forces at Camp Bucca.

• Returning to Syria, he founded the al-Nusra Front, later splitting from al-Qaeda and forming Hay’at Tahrir al-Sham (HTS).

• Despite HTS being labeled a terrorist organization by the U.S., the group was officially dissolved in January 2025 following Assad's ouster.

Now, as Syria's president, al-Sharaa is rapidly gaining international legitimacy. He has met with world leaders including French President Emmanuel Macron, Turkish President Recep Tayyip Erdoğan, and most recently, U.S. President Donald Trump, in a historic meeting in Riyadh—the first between U.S. and Syrian leaders in 25 years.

Ahmed al-Sharaa with French President Emmanuel Macron

Trump’s Announcement: A Radical Policy Reversal

During the U.S.-Saudi Investment Forum in Riyadh, Trump declared:

“I will be ordering the cessation of sanctions against Syria in order to give them a chance at greatness… It’s their time to shine. We’re taking them all off. Good luck Syria, show us something very special.”

Trump’s announcement came after consultations with regional allies including Saudi Arabia, Qatar, and the UAE, all of whom have shown strong support for the new Syrian government. Qatar had previously pledged $29 million per month for Syria’s public sector but withheld funds due to U.S. sanctions. Now, that aid—and potentially much more—is poised to begin flowing.

How Sanctions Crushed Syria—and Why Lifting Them Matters

The Caesar Act and related sanctions cut Syria off from the world. Syrians could not access international banking services, technology platforms, or reliable imports. Public services collapsed. The exchange rate skyrocketed, wages fell, and food and fuel prices soared.

“Salaries would go up. Bread and gasoline would be cheaper. The electricity would come on for more than a few hours per day. The reconstruction of destroyed towns and cities would begin.”

These are not just predictions—they are expectations from Syrians on the ground who see the lifting of sanctions as a lifeline. In the days after Trump’s announcement, the Syrian pound rebounded sharply, and prices of essentials began to fall. There’s hope that electricity, healthcare, and internet services—currently intermittent or unavailable—could finally stabilize.

Yet dismantling sanctions isn’t simple. Many were imposed by Congress, particularly under the Caesar Act, meaning Trump can only suspend some sanctions via executive authority. Full repeal would require congressional action, which remains uncertain.

The Trump-Al-Sharaa Meeting: Legitimacy and Strategy

Ahmed al-Sharaa (left), President Trump (centre) and Saudi Crown Prince Mohammed bin Salman (Right)

President Trump met face-to-face with Ahmed al-Sharaa in Riyadh on Wednesday, with Saudi Crown Prince Mohammed bin Salman present and President Erdoğan participating remotely. According to the White House, Trump pressed al-Sharaa on several key issues:

• Expel foreign terrorist groups from Syria

• Take control of ISIS detention centers in northeastern Syria

• Pursue normalization with Israel, possibly through the Abraham Accords

• Support U.S. counterterrorism operations in the region

In a statement, the White House Press Secretary Karoline Leavitt called the meeting “historic,” and emphasized its focus on “avenues for Syrian-American partnership.”

Map of Saudi Arabia

Trump described al-Sharaa as “a young, attractive guy… Strong past. Fighter… He’s got a real shot at holding it together.”

President Trump shaking hand with Ahmed al-Sharaa

The Abraham Accords

Trump’s push for Syria to join the Abraham Accords is among the boldest elements of his Middle East strategy. Initially signed in 2020, the Accords normalized diplomatic relations between Israel and several Arab nations, including the UAE, Bahrain, Morocco, and Sudan.

The Goal of the Abraham Accords:

• End decades of hostility between Israel and Arab nations,

• Promote regional trade, security cooperation, and diplomatic normalization,

• Counter Iranian influence in the region.

Bringing Syria into the Accords would be groundbreaking, especially given its history of hostility toward Israel. Trump reportedly encouraged al-Sharaa to pursue peace with Israel, suggesting it could unlock billions in investment and help position Syria as a regional economic partner, not a pariah.

Yet, such a step would face internal resistance from Syrian factions and deep mistrust from Israeli officials.

Regional Responses: Support, Skepticism, and Strategic Shifts

Gulf States’ Backing

Saudi Arabia and Qatar are likely to increase economic and political support for Damascus. Freed from U.S. penalties, they can now fund public salaries, invest in reconstruction, and help rebuild infrastructure destroyed in the war. Turkish construction firms are also expected to pursue new contracts.

Israel’s Caution

Despite Syria’s tentative signals toward peace talks, Israel remains cautious. Officials continue to view al-Sharaa as a former jihadist, and Israeli airstrikes near Damascus have not abated. Concerns remain over Iranian-backed militias operating in southern Syria and violence in Druze-majority regions.

Voices from Syria: Hope and Hesitation

For many Syrians, Trump’s announcement was met with relief—and guarded optimism.

“It will put us at ease,” said Sami al-Hajj, a pharmacist in Idlib.“We are tired and we want stability and to live a dignified life,” said another resident.

Stories of suffering during the sanctions era are numerous:

• Rasha al-Masri, a former accountant, left her job when her salary fell below $100/month.

• Heba Mahmoud, a homemaker, praised al-Sharaa’s leadership, saying he had “brought the Syrian people to a place we never thought we would reach.”

“The internet was slow, and we had to use a VPN to do anything,” Rasha added. “Cars were expensive and we felt like we could never afford anything.”

Still, many acknowledge that recovery will take time. The U.N. has warned Syria may not return to prewar economic output before 2080, even under favorable conditions.

A Risky Bet or a Strategic Breakthrough?

President Trump’s decision to lift sanctions on Syria marks a bold, controversial, and potentially game-changing moment in international relations. It could be the key that unlocks Syria’s reconstruction and reentry into the global system—or it could backfire if the new leadership fails to deliver reform, peace, and accountability.

As one analyst put it, “Now the ball is in the court of the new government.” The world—and especially the Syrian people—will be watching closely to see whether Ahmed al-Sharaa can translate international legitimacy into lasting peace and real economic revival.

For now, hope has returned to a nation long deprived of it.