The United States has formally removed Syria from its State Sponsor of Terrorism list, ending a designation in place since 1979 and clearing what analysts describe as the last major barrier to reconnecting Syrian banks with the global financial system after earlier 2025 sanctions relief. President Donald Trump notified Congress on July 8 of his intent to rescind the label; the 45-day review expired without a block and the delisting was completed early the following week. Syrian President Ahmed al-Sharaa welcomed the step as opening a path to development and reconstruction, while U.S. officials said it removes major obstacles to private investment and capital inflows even as counterterrorism enforcement and targeted sanctions remain. The move follows the December 2024 fall of Bashar al-Assad and prior dismantling of broad U.S. Syria sanctions, including repeal of the Caesar Act. Analysts note severe poverty—with nearly 90 percent of Syrians below the poverty line—and say benefits will be gradual and depend on governance, AML/CFT standards, and stability. Timing coincides with the Central Bank of Syria’s March reactivation of its Federal Reserve Bank of New York account and a World Bank $100 million grant for financial-sector modernisation, against reconstruction needs the World Bank has estimated above $216 billion.