Overview

• President Trump announced the lifting of all U.S. sanctions on Syria on May 13, marking a major policy shift aimed at facilitating economic recovery and reconstruction.
• The Treasury and State Departments are working to issue Caesar Act waivers and general licenses, but the scope and conditions of sanctions relief remain undefined.
• Syria's transitional government, led by Ahmed al-Sharaa, welcomed the move as a critical step for rebuilding, with the Syrian pound strengthening by 25% following the announcement.
• Trump's decision was reportedly influenced by Saudi Arabia and includes potential conditions such as recognizing Israel, expelling foreign fighters, and counterterrorism cooperation.
• Experts caution that while sanctions relief is expected to unlock investment and aid, implementation challenges and internal sectarian tensions could hinder Syria's recovery.