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US Restores Diplomatic Ties with Syria, Signs $7 Billion Energy Deal

The effort aims to leverage a $7 billion power deal to rebuild Syria by opening talks for a non-aggression pact with Israel.

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A member of the security forces stands guard outside the U.S. ambassador's residence as U.S. Ambassador to Turkey and Special Envoy to Syria Tom Barrack arrives to inaugurate the long-shuttered compound in Damascus, Syria, Thursday, May 29, 2025.
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Syrian Foreign Minister Asaad Hassan al-Shibani stands next to U.S. envoy for Syria Thomas Barrack as he raises the American flag at U.S. ambassador's residency in Damascus, Syria May 29, 2025. REUTERS/Firas Makdesi

Overview

  • Thomas Barrack raised the American flag over the reopened US ambassador’s residence in Damascus for the first time since 2012 as the newly appointed special envoy to Syria.
  • President Donald Trump lifted longstanding US sanctions on Syria after meeting interim President Ahmed al-Sharaa in Riyadh, prompting the State Department to waive economic restrictions.
  • Syria inked a $7 billion agreement with Qatari, US and Turkish companies to rehabilitate its electricity grid and generate 5,000 megawatts of power for reconstruction.
  • Barrack announced that Syria’s designation as a state sponsor of terrorism will be removed pending a six-month congressional review.
  • The US is mediating indirect discussions between Syria and Israel aimed at securing a non-aggression agreement to stabilize tensions over the Golan Heights.