Iran in a Quarter Century: Clash Between the ‘Revolution’ and the State

An Iranian woman walks by the former US embassy in Tehran. (AFP)
An Iranian woman walks by the former US embassy in Tehran. (AFP)
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Iran in a Quarter Century: Clash Between the ‘Revolution’ and the State

An Iranian woman walks by the former US embassy in Tehran. (AFP)
An Iranian woman walks by the former US embassy in Tehran. (AFP)

For the past quarter century, Iran endured a bitter conflict between the ideological aspects of the “revolution” and the strategic view aimed at protecting the state and its interests in a changing world.

Despite hopes for radical change, attempts to achieve reform collided with resistance from the traditional centers of power, preventing real reconciliation between the contradiction in the principles of the “revolution” and the demands of national reforms, or at least achieving some form of sustainable agreement between these opposing movements.

Since 2000, Iran witnessed the election of five presidents with limited jurisdiction, and five parliamentary elections, which were dominated by either of the main reformist and conservative movements, amid the ongoing debate over the nature of rule, its agenda and priorities.

Since the 1979 revolution, the jurisdiction of the parliament and government has been fully under the control of the decision-making centers in the country, with Supreme Leader Ali Khamenei at the top of the pyramid. The supreme leader enjoys almost absolute power, making him above all state institutions.

Meanwhile, the role of the military and political institutions, such as the Iranian Revolutionary Guards Corps (IRGC) and Guardian Council, expanded as they maintained their role in protecting the ideological principles of the ruling system. The system is based on a constitution that is in turn based on the Wilayat al-Faqih. These institutions are the main tools for preserving the identity of the “Islamic Republic” and bolstering its position that is hostile to the West.

Some 45 years after its “Islamic Revolution”, Iran has yet to reconcile the contradictions between its principles and national interests. (Getty Images)

Khatami and shift in the conflict

The beginning of the new millennium in Iran coincided with a decisive moment in reformist President Mohammed Khatami’s term (1997-2005). The period was marked with the intensification of the confrontation between the reformists and conservatives. The latter sought to obstruct reforms pursued by Khatami, especially in civil freedoms and freedom of expression.

The non-elected institutions that are under Khamenei’s direct supervision, such as the Guardian Council and judiciary, played a decisive role in obstructing reform measures, creating challenges for the reformists in achieving their political and social agendas.

Khatami’s term in office witnessed a major shift in the clash between the supporters of the ideology of the revolution and those calling for achieving strategic interests. He believed that the reforms were a strategic need to secure the continuity of the system of rule and its ability to adapt to internal and external changes. His critics, however, believed that his approach threatened the very foundations of the Wilayat al-Faqih.

Iran worked on improving its relations with the West and boosting its national identity through the Dialogue Among Civilizations, but the September 11, 2001, attacks and the US invasion of Iraq in 2003 were a blow to these efforts.

Iran saw in the collapse of Saddam Hussein’s regime in neighboring Iraq an opportunity to expand its ideological influence through supporting groups that were affiliated with Iran or were established within its territory. The nuclear file also undermined the Dialogue Among Civilizations initiative and efforts to build trust with the West, thereby increasing Iran’s isolation and regional and international tensions.

The Iranian Revolutionary Guards played a main role in the nuclear program and regional wars. (Khamenei’s official website)

IRGC and the regional role

The IRGC played a main role in issues related to the nuclear program, internal developments and the wars in Afghanistan and Iraq at the end of Khatami’s term.

In Afghanistan, the IRGC supported the United States in ousting the Taliban from power. In Iraq, the IRGC’s Quds Force led armed Iraqi factions in bolstering Iranian influence that persist to this day. Under General Qassem Soleimani’s leadership, the Quds Force also expanded its operations in Lebanon, helping establish a network that ran parallel to Iranian diplomacy in regional politics.

Iran felt threatened by the US’ bolstered military presence in the region, leading it to expand its security and strategic plans, starting with the nuclear and ballistic missiles programs.

In 2002, the discovery of secret nuclear facilities aroused suspicions among the international community about Iran’s nuclear ambitions and the possibility that it would pursue the production of a nuclear bomb. Amid the rising tensions, the West shifted its priorities towards Tehran to curbing its nuclear activities. Moreover, US officials, especially during President George W. Bush’s term, threatened on numerous occasions to use military force against Iran if it continued to pursue its nuclear ambitions.

Iran has bolstered its influence in the Middle East, stoking tensions with regional powers. (AP)

Nuclear file and internal tensions

The nuclear file has been a source of tension inside and outside Iran ever since. On the domestic level, it sparked debate about the country’s national priorities. The reformists sought to maintain Tehran’s international relations and ease tensions, while the conservatives clung on to their ideological principles.

In 2003, Tehran declared that it was voluntarily ending its uranium enrichment as part of the Amad Plan agreement reached with the European troika. In return, it received a pledge that the file would not be referred to the UN Security Council and that economic ties would be established with Europe. That same year, Iran heavily promoted Khamenei’s fatwa that barred the production, storing or use of nuclear weapons.

The US, however, remained suspicious of Iran’s intentions. It believed that agreements were not enough and it accused Iran of expanding its nuclear program, leading it to impose sanctions on its banks and energy sector. During the term of President Mahmoud Ahmedinejad, it referred the program to the Security Council – a move that was welcomed by the international community. The move prompted Iran to adopt an aggressive policy against western powers.

Iran has never officially declared that it was developing nuclear weapons. In 2007, US intelligence released a report that said Tehran had stopped its nuclear weapons development in 2003, helping to soften the American position against it.

Throughout Ahmedinejad’s eight years in office, tensions rose with the West over the nuclear program. Tehran raised its level of uranium enrichment to 20 percent while the president insisted on his country’s right to the peaceful use of nuclear technology. In return, crippling sanctions were imposed on its nuclear program, oil exports and economy.

Khamenei meets with veterans from the Iraqi-Iranian war. (EPA)

Iran and the ‘Arab Spring’

On the foreign level, Iran aspired to bolster relations with Arab, African and Latin American countries. It also backed armed groups like Hezbollah in Lebanon and Hamas.

With the eruption of the “Arab Spring” revolts, Iran sought to consolidate its influence in the Middle East, especially in Iraq, Syria, Lebanon and Yemen, stoking tensions with regional powers and Arab countries. Supporting Bashar al-Assad's regime in Syria was also a top priority for Ahmedinejad before he was succeeded by Hassan Rouhani.

On the domestic level, Iran went through a huge crisis after Ahmedinejad won the 2009 elections. The wave of “Green Movement” demonstrations erupted in protest against the elections results between Ahmedinejad, and reformist candidates Mir Hossein Moussavi and Mehdi Karroubi.

After Ahmedinejad’s term ended, Iran tried to ease tensions with the West. It took part in nuclear negotiations aimed at managing tensions with the major powers. Two years of negotiations led to the 2015 nuclear deal, known as the Joint Comprehensive Plan of Action (JCPOA), that suspended UN sanctions on Iran and lifted restrictions on its nuclear program.

The supreme leader played a pivotal role in the negotiations. He set red lines when it came to maintaining Iran’s right to uranium enrichment, lifting economic sanctions and refusing visits to military facilities by international inspectors.

Khamenei cautiously supported Rouhani’s negotiating team at the nuclear talks despite pressure from conservative movements. The negotiations struck a balance between ideology and strategic interests as Iran sought to maintain its “revolutionary” slogans, while adapting to international changes, confronting economic and security challenges and continuing to fund its regional activities to ensure that it remained a main player in the Middle East.

The IRGC continued to consolidate Iran’s influence in the region, especially in Syria and Iraq, and Khamenei threatened to expel American forces from the region. The tensions alarmed the American administration leading then President Donald Trump to pull Washington out of the nuclear deal in 2018.

Qassem Soleimani. (Tasnim)

Patience in handling pressure

In confronting Trump’s “maximum pressure” campaign, including preventing Iran from selling oil, Tehran adopted a policy of “walking on the edge of the abyss” and of “strategic patience.” Regional tensions also spiked with the IRGC seizing oil tankers after Tehran threatened to block oil shipping lanes. Trump consequently designated the IRGC as terrorist.

Trump would also order the killing of Quds Forces commander Soleimani in Baghdad in January 2020. The move took Iranian-American tensions to a whole new level and threatened to spark a direct war between the two countries.

In a leaked 2021 recording, then foreign minister Mohammed Javad Zarif called for striking a balance between foreign policy and the policy on the field, a reference to the Quds Force that leads the IRGC’s foreign operations. The recordings exposed an internal rift between the ideological and pragmatic movements in Iran, with the latter wanting to achieve interests, such as the lifting of sanctions.

Zarif defended his conviction that diplomatic work relies on the situation on the ground and vice versa, meaning diplomacy can grant “international legitimacy” to achievements on the field.

When US President Joe Biden came to office, Khamenei used his influence to support the IRGC and showed limited leniency in managing tensions through new nuclear negotiations. Biden tried to return to the nuclear pact with Tehran, but Iran’s unprecedented nuclear measures adopted by conservative late President Ebrahim Raisi and Russia’s war on Ukraine thwarted diplomacy.

18 December 2024, Iran, Tehran: Iran's President Masoud Pezeshkian speaks during the Cabinet meeting in Tehran. (Iranian Presidency/dpa)

Raisi and the ‘revolutionary government’

Under Raisi, Tehran pursued diplomacy at the negotiating table with the West, but the talks never made it to the finish line.

His term in office was cut short by his death in a helicopter crash in May 2024. His time in power was marked by loyalty to the supreme leader’s view of forming a “revolutionary government” and limiting state power to conservatives.

Raisi effectively followed in the same footsteps as Ahmedinejad: Tehran sought rapprochement with regional forces, while hoping to circumvent sanctions and speed up its nuclear activities.

Raisi was succeeded by Masoud Pezeshkian, who was backed reformists. He pledged to maintain the policy of turning to the east and bolstering relations with China and Russia. He also sought to lift sanctions on Iran by returning to nuclear negotiations.

On the regional level, Tehran’s “shadow war” with Israel came out to the open and the two sides traded direct blows. Following Raisi’s death, Iran continued to suffer more setbacks, notably the collapse of the Assad regime in Syria and the weakening of Hezbollah and Hamas’ roles. These developments will weaken the IRGC’s regional role, but it could seek to compensate for its losses in other regions, even inside Iran itself.

Pezeshkian and internal reconciliation

Pezeshkian’s presidency is seen as an opportunity to achieve internal reconciliation in Iran at a critical time when the people are preoccupied with the issue of Khamenei’s successor. Iran is unlikely to introduce radical change to its relations with the West and Pezeshkian may be granted limited jurisdiction in the nuclear negotiations.

Soon after Trump’s re-election as president, Pezeshkian stressed the need to manage relations and the confrontation with the US. He said his government will follow the strategy of the ruling system.

Pezeshkian will likely receive the backing of the supreme leader and IRGC to reach a settlement that would ease pressure on Iran. This does not necessarily mean that Iran will be moving away from the edge of the abyss. On the contrary, it could reflect an attempt to widen the margin for maneuver amid the tensions with the West. Iran is expected to follow this approach in the near future or at least when the identity of the third supreme leader is revealed.



Sheikh Hamad bin Khalifa: The Emir Who Transformed Qatar

Former Qatari Emir Sheikh Hamad bin Khalifa Al Thani (Asharq Al-Awsat)
Former Qatari Emir Sheikh Hamad bin Khalifa Al Thani (Asharq Al-Awsat)
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Sheikh Hamad bin Khalifa: The Emir Who Transformed Qatar

Former Qatari Emir Sheikh Hamad bin Khalifa Al Thani (Asharq Al-Awsat)
Former Qatari Emir Sheikh Hamad bin Khalifa Al Thani (Asharq Al-Awsat)

With the passing of the Father Emir, Hamad bin Khalifa Al Thani, Qatar closes the chapter on one of the Gulf region's most significant political and development success stories of recent decades. His name became synonymous with the most profound transformation in the country's modern history, as Qatar evolved during his reign from a state with a limited international profile into an influential player in regional and global politics, economics, and media.

Sheikh Hamad is widely regarded as one of Qatar's defining leaders and the architect of its modern renaissance. Under his leadership, the country underwent sweeping economic, social, and cultural transformation. During his reign, Qatar's gross domestic product expanded more than twenty-fourfold, while GDP per capita increased nearly sixfold.

Born in Doha in 1952, Sheikh Hamad graduated from the Royal Military Academy Sandhurst in 1971. He then joined the armed forces, rising through the military ranks before being appointed Crown Prince and Minister of Defense in 1977. On June 27, 1995, he assumed power, and in June 2013 handed authority to his son, Tamim bin Hamad Al Thani, in a smooth transfer of power widely regarded as one of the region's rare peaceful successions.

A Strong Economy

Sheikh Hamad's economic strategy centered on harnessing Qatar's vast natural gas wealth to build a strong and diversified economy. During his years in power, the country's GDP grew dramatically, average incomes rose sharply, and exports of liquefied natural gas ushered in a new era in Qatar's history. Following the first LNG shipment in 1996, Qatar became the world's largest exporter of liquefied natural gas by 2006, generating enormous revenues that financed major investments in infrastructure, education, healthcare, and public services.

Expanding Qatar's International Role

On the international stage, Qatar adopted a far more active foreign policy, positioning itself as a mediator in a number of regional and international conflicts. Among its most prominent diplomatic efforts were its role in Lebanon during the 2006 war and the country's political crisis in 2008.

Qatar also took a leading role in supporting the Palestinian cause, particularly through economic assistance to the Gaza Strip and by providing a platform for negotiations aimed at ending the conflict there. In 2012, Sheikh Hamad became the first Arab leader to visit Gaza after Hamas took control of the territory.

He also forged close strategic ties with the United States. During his reign, Al Udeid Air Base was established in 1996. Qatar financed almost the entire construction of the base, at a cost exceeding $1 billion, as part of a strategy to strengthen its defense capabilities and deepen military cooperation with the United States following the Gulf War. By 2002, it had become one of the most important US. military bases outside the United States.

Qatar also participated in the international conference supporting post-Gaddafi Libya in Paris. During Sheikh Hamad's rule, Doha became a major supporter of the Syrian cause, providing extensive political and humanitarian backing to the Syrian opposition, an approach that continued in subsequent years.

Beginning in the mid-1990s, Qatar pursued a foreign policy built on relative neutrality and open channels with opposing parties, allowing it to serve as a mediator in regional and international disputes. Over time, this approach became one of the country's most effective instruments of soft power, transforming Doha into a permanent venue for negotiations and political dialogue.

Today, the Qatari capital is widely recognized as one of the world's leading hubs for mediation and conflict resolution, a role first established under Sheikh Hamad and later expanded during the reign of Sheikh Tamim.

Soft Power

Just one year after assuming power, Sheikh Hamad launched the Al Jazeera Media Network in 1996. The network quickly became one of the Arab world's most influential media platforms, giving Qatar an outsized voice in regional political discourse. As the Arab world underwent profound political change, Al Jazeera emerged as one of Qatar's most powerful instruments of influence, elevating the country's international profile far beyond its geographic size.

The World Cup

Qatar's hosting of the 2022 FIFA World Cup was far more than a sporting event. It was a strategic national project and a defining milestone that reshaped the country's standing on the global stage.

By hosting football's biggest tournament, Qatar became both the first Arab nation and the first Middle Eastern country to stage the World Cup, earning unprecedented global visibility across the media, political, and economic spheres while reinforcing its image as a nation capable of organizing events of the highest international caliber.

The tournament also became one of Qatar's most effective soft power tools. Rather than relying solely on traditional forms of influence, Doha used sport to strengthen its international image, showcase its organizational capabilities, and capture the world's attention.

Sheikh Hamad bin Khalifa Al Thani leaves behind a lasting legacy in Qatar's modern history. His name is inseparable from the country's transformation from an economy largely dependent on natural resources into a state wielding influence through a diverse set of instruments, including economic strength, global investment, media, diplomacy, and sport.

Many of the defining features of Qatar's current policies remain rooted in the foundations he laid during his years in power, making his legacy one of the Gulf region's most significant political and developmental transformations in recent decades.


‘Our Land, Our Sky:’ West Bank Palestinians Fly Kites in Defiance of Israeli Settlers

 A youth releases a kite in the colors of the Palestinian flag as he takes part in a kite festival under the theme "The Land Is Our Land and the Sky Is Our Sky," in the village of Burin near the West Bank city of Nablus, Friday, July 10, 2026. (AP)
A youth releases a kite in the colors of the Palestinian flag as he takes part in a kite festival under the theme "The Land Is Our Land and the Sky Is Our Sky," in the village of Burin near the West Bank city of Nablus, Friday, July 10, 2026. (AP)
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‘Our Land, Our Sky:’ West Bank Palestinians Fly Kites in Defiance of Israeli Settlers

 A youth releases a kite in the colors of the Palestinian flag as he takes part in a kite festival under the theme "The Land Is Our Land and the Sky Is Our Sky," in the village of Burin near the West Bank city of Nablus, Friday, July 10, 2026. (AP)
A youth releases a kite in the colors of the Palestinian flag as he takes part in a kite festival under the theme "The Land Is Our Land and the Sky Is Our Sky," in the village of Burin near the West Bank city of Nablus, Friday, July 10, 2026. (AP)

As brightly colored kites climb above Burin, a Palestinian village in the Israeli-occupied West Bank, children race across a sun-baked hillside, watching their creations soar into the sky.

Behind them, the red-roofed houses of Har Bracha, an Israeli settlement, overlook the village below.

Established in 1983, the settlement, illegal under international law, is one of several that encircle Burin, a village of a few thousand people.

Every summer since 2009, residents have gathered on this hill for a kite festival, held on land they say has been partly lost after being confiscated by settlers.

"We want to tell the settlers that this is our land, this is our sky. If we can't reach those lands anymore, our kites can," Ghassan Najjar, one of the festival's organizers, told AFP.

While the festival is primarily for children, it also carries a "political message," he says.

In Burin, conversations rarely drift far from settler attacks or the steady spread of Israeli settlements across the Palestinian territory.

As early as 2008, the United Nations Office for the Coordination of Humanitarian Affairs (OCHA) had warned of settler attacks in the area, citing shootings targeting Burin residents and the uprooting of their olive trees.

Since the start of the war in Gaza in October 2023, the United Nations has reported a sharp increase in violence attributed to Israeli settlers in the West Bank, while several Israeli ministers have continued to call for the annexation of all or part of the territory.

Palestinians and solidarity activists fly kites towards the Israeli settlement of Har Bracha from the village of Burin, south of Nablus in the occupied West Bank on July 10, 2026. (AFP)

- 'Our roots' -

For a few hours, however, the hillside takes on the air of a village fair.

A clown paints children's faces, music fills the air, as families spread picnic carpets across the grass.

Kites in the black, white, green and red of the Palestinian flag soar overhead, joined by another in the colors of Egypt, flown in tribute to the Egyptian national football team.

"Our children have the right to play and to have a real and good life," says Najjar.

Yet even this celebration unfolds under the shadow of the conflict.

Before gathering, residents say they first checked that no groups of Israeli settlers were nearby.

"Sometimes we are scared... Last year we didn't come because settlers had attacked the village," says 15-year-old Sanaa Bashar Najjar.

"We stay only half an hour or an hour, just to get a bit of fresh air. With the war and the economic hardship, we're simply trying to breathe."

Another resident, Dalia Zaban, says her parents' home was attacked, its windows smashed and cars vandalized.

"Today, we just hope they don't come down here," she said.

As the afternoon wears on, the wind begins to fade and the kites slowly drift back to earth.

The villagers, however, say they will return next summer, determined to reclaim at least a patch of sky.

Wearing sunglasses and dressed with care, Burin resident Qusai Walid Eid summarizes the feeling, saying he attends the festival every year to strengthen "our roots in this land".


What Does Removing Syria from the US List of State Sponsors of Terrorism Mean for Its Economy?

US President Donald Trump holds a bilateral meeting with Syrian President Ahmed al-Sharaa alongside the NATO leaders summit at the Bestepe Presidential Compound in Ankara, Türkiye, July 8, 2026. REUTERS/Jonathan Ernst
US President Donald Trump holds a bilateral meeting with Syrian President Ahmed al-Sharaa alongside the NATO leaders summit at the Bestepe Presidential Compound in Ankara, Türkiye, July 8, 2026. REUTERS/Jonathan Ernst
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What Does Removing Syria from the US List of State Sponsors of Terrorism Mean for Its Economy?

US President Donald Trump holds a bilateral meeting with Syrian President Ahmed al-Sharaa alongside the NATO leaders summit at the Bestepe Presidential Compound in Ankara, Türkiye, July 8, 2026. REUTERS/Jonathan Ernst
US President Donald Trump holds a bilateral meeting with Syrian President Ahmed al-Sharaa alongside the NATO leaders summit at the Bestepe Presidential Compound in Ankara, Türkiye, July 8, 2026. REUTERS/Jonathan Ernst

The US administration’s decision to begin the process of removing Syria from its list of State Sponsors of Terrorism (SST) - where it has remained since 1979 - marks the country’s most significant political and economic shift in decades.

The designation was more than a political label; it served as the legal cornerstone of the extensive US sanctions architecture imposed on Syria. Its removal could reopen the door to trade, investment, and large-scale reconstruction.

The announcement followed what Washington described as “positive changes” by the Syrian government and formal assurances from Syrian President Ahmed al-Sharaa that Syria would not support acts of international terrorism in the future.

Secretary of State Marco Rubio subsequently notified Congress of President Donald Trump’s intention to rescind the designation after the required 45-day congressional notification period, describing the move as “historic” and saying it offers Syria a genuine opportunity to rebuild and open a new chapter for its people.

Syrian officials welcomed the decision. Finance Minister Mohammad Yosr Barnieh called it “a historic moment” heralding a new era of prosperity, investment, and economic recovery. He said the move would open a new chapter for the Syrian economy, accelerate recovery, encourage investment, and facilitate Syria’s reintegration into the global economy.

Central Bank Governor Safwat Raslan likewise described the decision as “a positive turning point” that would strengthen confidence, attract investment, and help reintegrate Syria into the global financial system. He reaffirmed the central bank’s commitment to reforms, monetary stability, and long-term economic recovery.

Reconnecting to the Global Financial System

In practical terms, the decision paves the way for Syrian banks to gradually reconnect with the global financial system, correspondent banking networks, and the SWIFT international payments system. The terrorism designation had effectively prevented foreign correspondent banks from dealing with Syrian financial institutions for fear of US legal penalties.

Reintegration could improve access to trade finance and sharply reduce the cost of remittances from Syrians abroad. For years, expatriates have relied on costly informal channels to circumvent sanctions. Easier remittance flows would provide a direct boost to household incomes and financial stability.

Removing Barriers to Investment

For years, US secondary sanctions linked to the terrorism designation discouraged foreign companies from participating in reconstruction projects, fearing hefty fines or exclusion from the US market.

Highlighting the policy shift, the US administration quoted Trump as telling Al-Sharaa: “I promised to remove all the barriers preventing you from rebuilding your country, and very soon you will finally be able to do so.” Trump also said US companies are already interested in investing in Syria.

Removing the designation significantly reduces reputational risk and gives multinational companies greater legal and procedural certainty to invest in infrastructure, real estate, telecommunications, and other sectors.

Reviving Trade and the Energy Sector

Foreign trade is also expected to benefit. Previous restrictions limited imports of advanced industrial equipment and technology classified as “dual-use” goods with potential civilian and military applications. Easing those restrictions would allow Syrian manufacturers to import production lines, agricultural equipment, and medical supplies with far fewer regulatory hurdles.

The energy sector, which has suffered years of severe deterioration, could also benefit. International companies would be able to provide spare parts, technical expertise, and technology needed to rehabilitate damaged oil and gas fields and repair aging power plants, helping ease chronic electricity shortages and support industrial production.

Restoring Access to International Financing

Syria’s designation as a State Sponsor of Terrorism also triggered an effective US veto on loans, grants, technical assistance, and other support from international financial institutions, particularly the World Bank and the International Monetary Fund.

With the designation removed, Damascus could theoretically begin negotiations with these institutions to secure development financing, support economic restructuring, and implement monetary and fiscal reforms.

From Blanket Prohibition to Risk-Based Assessment

Legal experts say the decision fundamentally changes how international companies and financial institutions assess Syria.

Previously, US law effectively imposed a blanket prohibition on doing business with Syria, leaving banks and corporations with virtually no room for discretion. Now, the automatic legal barrier is removed. Banks and companies can independently assess the remaining legal and commercial risks and proceed with transactions that comply with other applicable sanctions. This represents a fundamental shift, giving investors and financial institutions flexibility that has not existed since Syria was added to the terrorism list in 1979.

Why the Economic Crisis Will Not End Overnight

Despite the significance of Rubio’s announcement and the June 30, 2025 executive order easing certain restrictions, the economic impact is unlikely to be immediate.

The biggest constraint is that removing Syria from the terrorism list does not dismantle the broader sanctions regime. Numerous US laws and executive orders targeting key economic sectors, entities, and individuals remain in force.

In addition, Syria is likely to face prolonged caution from international banks — a phenomenon known as “over-compliance.” Many financial institutions are expected to spend months, if not years, conducting extensive legal reviews before reopening accounts or facilitating trade with Syria, seeking to avoid penalties under the sanctions that remain in place.

Ultimately, Syria’s economic recovery will depend not only on the easing of US restrictions but also on its ability to implement deep structural and institutional reforms, improve the business environment, and maintain monetary stability.

Removing Syria from the State Sponsors of Terrorism list is a major step toward reducing reputational risk and reopening international markets. But a full recovery remains a long-term process that will require the gradual dismantling of the remaining sanctions, which continue to pose the greatest obstacle to Syria’s reintegration into the global economy.