Washington Moves to End ‘Caesar Act’ as Damascus Hails Diplomatic Win

“Caesar,” his identity concealed by a blue jacket, attends a US Congress hearing on the Syrian Civilian Protection Act (AFP)
“Caesar,” his identity concealed by a blue jacket, attends a US Congress hearing on the Syrian Civilian Protection Act (AFP)
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Washington Moves to End ‘Caesar Act’ as Damascus Hails Diplomatic Win

“Caesar,” his identity concealed by a blue jacket, attends a US Congress hearing on the Syrian Civilian Protection Act (AFP)
“Caesar,” his identity concealed by a blue jacket, attends a US Congress hearing on the Syrian Civilian Protection Act (AFP)

In a move described as a “watershed moment” in Washington’s approach to the Syrian file, the US Senate has voted to repeal the Caesar Act, a sanctions law imposed on Damascus in 2019 as part of a “maximum pressure” campaign against the former Syrian president Bashar al-Assad.

The measure, which passed by a vote of 77 to 20, still requires approval by the House of Representatives before being sent to President Donald Trump for his signature. The decision has sparked broad debate over whether Washington is redrawing its Syria policy for the post-Assad era or merely laying the groundwork for a new regional balance.

A New Era
The reaction in Damascus was swift and celebratory. Foreign Minister Asaad al-Shaibani hailed the vote as a “victory for Syrian diplomacy,” saying the repeal “frees the national economy from harsh constraints that have shackled it for years.”

“Through this step, Syria takes its first breath again, and Syrians regain their right to rebuild and shape their future,” al-Shaibani wrote on X.

Finance Minister Mohammed Yisr Barnieh described the Senate’s action as “the culmination of persistent efforts to lift the last and harshest sanctions on the country,” noting that the approved version includes an additional clause calling for the reopening of the US Embassy in Damascus.

In a social media post, Barnieh added that “the sanctions are now behind us,” and declared the coming phase “one of reform and development”- a clear signal of the government’s intent to restart reconstruction and attract investment.

Testing Washington’s Intentions
The US move goes beyond economics, serving as a test of the political intentions of Trump’s second administration. It comes as Washington seeks to curtail Iran’s presence in Syria and offset Russia’s diminished role amid pressure from the war in Ukraine.

Analysts in Washington say repealing the Caesar Act does not necessarily mean lifting all restrictions or restoring diplomatic ties immediately, but it sends a “political message” to Damascus and regional capitals that the United States is prepared to engage with a new reality provided it is accompanied by tangible reforms inside Syria.

Others see the Senate vote as a pragmatic step aimed at easing the humanitarian burden on Syrians after years of economic paralysis and industrial contraction. The Caesar Act, named after the pseudonym of the Syrian military defector who smuggled out harrowing photos of torture victims, had become increasingly controversial, with critics arguing it worsened living conditions more than it pressured the regime.

‘A Dramatic Victory’ after a Long Battle
Mohammed Ghanem, from the Syrian American Council, told Asharq Al-Awsat that the Senate vote “was not inevitable,” describing it as the outcome of “a fierce battle between supporters and opponents over the past several months.”

He called the outcome “a true victory for all the efforts made to include the repeal of the Caesar Act within the US Defense Authorization Bill.”

Ghanem said the adopted clause stipulates the unconditional repeal of the Caesar Act by the end of this year, adding that “the fight was extremely tough.” But he noted that the legislative process is not yet over, as the bill “will now go to negotiations with the House to finalize a version that will be sent to President Trump for signature before year-end.”

He added that the Council had succeeded in amending disputed provisions so that they are now “non-binding goals rather than mandatory conditions that would automatically reinstate sanctions if unmet.”

Under the current draft, “Congress may only discuss the possibility of reinstating sanctions if the Syrian government fails to make progress within 12 months,” he said.

Ghanem added that this adjustment “foiled attempts to keep the Caesar Act as a sword hanging over investors’ heads.” Another provision, he noted, “requires the administration to submit a report to Congress on efforts to facilitate reopening the US Embassy in Damascus and to advance diplomatic ties between the two countries”- a “clear sign,” he said, “of Washington’s willingness to re-engage with Damascus.”

For his part, Mouaz Moustafa, executive director of the Syrian Emergency Task Force, told Asharq Al-Awsat that despite the positive step in the Senate, “both chambers of Congress must still approve the final version before the repeal is fully incorporated into the National Defense Authorization Act,” a series of federal laws Congress passes annually before the president’s signature.

“We can celebrate today,” Mustafa said, “but the battle to fully repeal the Caesar Act is not over. Continued efforts are needed to ensure it is eliminated unconditionally.”

The Road to the White House
The measure must now follow an additional legislative path: the House will vote on its own version before a joint committee reconciles the two texts. Only then will the bill go to President Trump for signing as part of the new defense budget.

Analysts say embedding the repeal within the defense authorization package gives it broad bipartisan cover and helps avoid divisive debate over policy toward Damascus. Including a clause on reopening the US Embassy in Syria’s capital, they add, also signals a potential reopening of official communication channels after more than a decade of diplomatic rupture.

Regional Context and Shifting Dynamics
The repeal of the Caesar Act also fits within broader regional shifts, as several Arab states have gradually moved toward political and economic normalization with Damascus.

Against the backdrop of mounting pressure on Iran’s presence in Syria, Washington appears to be closely watching how internal balances evolve in line with its priorities for a reshaped Middle East.

Observers say Trump’s pragmatic approach may aim to translate the Arab thaw with Damascus into an opportunity to diminish both Russian and Iranian influence without taking on the costs of reconstruction or direct involvement.

Whatever the final outcome, the US decision marks a new turning point in the Syrian conflict. While Damascus hails it as the dawn of a “new era of rebuilding and revival,” critics of the Assad regime see it as a test of Washington’s ability to reconcile political realism with the moral responsibility long associated with the name “Caesar.”



Hamas Members Struggle to Spend Cash Salaries

A Palestinian gives a child a sip of water from a bag bought for one shekel amid extreme heat in Gaza City in August 2025 (AP) 
A Palestinian gives a child a sip of water from a bag bought for one shekel amid extreme heat in Gaza City in August 2025 (AP) 
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Hamas Members Struggle to Spend Cash Salaries

A Palestinian gives a child a sip of water from a bag bought for one shekel amid extreme heat in Gaza City in August 2025 (AP) 
A Palestinian gives a child a sip of water from a bag bought for one shekel amid extreme heat in Gaza City in August 2025 (AP) 

Until three weeks ago, merchants in the Gaza Strip were still accepting cash from residents, even though much of it consisted of worn-out banknotes. But they began gradually refusing cash more than 10 days ago, hardening their stance over the past four days and turning instead to banking apps and electronic wallets.

The shift has coincided with intensified Israeli targeting and killing of Hamas financial officials in recent weeks, including some involved in delivering salaries to the group’s members.

Hamas employees told Asharq Al-Awsat that most government workers and members of its military wing, the Al-Qassam Brigades, receive their salaries in cash.

Several Hamas sources said government employees receive part of their salaries roughly every 100 days, amounting to only about 1,000 shekels ($328), often in worn banknotes. Al-Qassam members, meanwhile, are paid every 40 to 50 days, receiving up to around 60 percent of their salaries and no less than approximately 1,200 shekels, generally in banknotes in good condition.

People dealing with Gaza’s markets told Asharq Al-Awsat that some merchants had recently begun accepting cash from individuals and transferring the equivalent electronically through apps and e-wallets in exchange for commissions of up to 10 percent.

The crisis marks a reversal from the peak years of the war that began in October 2023, when Gazans struggled to convert money held in electronic wallets into cash. Commissions started at 10 percent and at times reached 60 percent before electronic transactions became more widespread.

In August, an Israeli military spokeswoman warned Palestinians in Gaza against using a category of old shekel banknotes marked with the letter “B,” in a move aimed at economically squeezing Hamas.

What Do We Do With Worn Banknotes?

Ahmed al-Najjar, 39, an employee of the Hamas-run government in Gaza, angrily questioned what employees were supposed to do with the worn banknotes they received.

“How long will things remain this way?” he told Asharq Al-Awsat. “We are the ones paying the price with our lives, and we find no one standing with us — neither officials nor merchants — while others fight us in different ways to make huge profits and gains.”

Israel has barred cash from entering Gaza since Oct. 7, 2023, while banks suffered major thefts during the war. Israeli security authorities also sought to impose conditions on Gaza merchants after periodically allowing goods into the enclave, requiring payments through electronic applications in a move aimed at restricting Hamas.

Under the new circumstances, Hamas appears to be facing a serious cash shortage affecting its members and employees, coinciding with repeated Israeli killings of funding sources, money changers and prominent figures in its financial apparatus.

Hamas Warns Merchants

The Hamas-run police in Gaza issued a general directive warning shopkeepers and others against refusing cash. It stressed that they must accept different types of banknotes, old and new, provided they are not damaged, and threatened violators with strict legal measures.

A Hamas police official told Asharq Al-Awsat that the issue did not affect only government employees or Hamas members, but also families of orphans, war victims, wounded Palestinians and prisoners who receive financial assistance from various relief organizations but cannot find merchants willing to accept their cash.

Hamas-affiliated media in Gaza have also launched a campaign against banks operating under the Palestinian Monetary Authority in Ramallah, accusing them of encouraging merchants to switch exclusively to electronic payments and of closing hundreds of residents’ bank accounts. Some banks have repeatedly denied the allegations, reiterating days ago that no decisions had been made to close accounts.

The dispute has fueled an unprecedented social media campaign warning people against giving up cash in favor of banking apps and other electronic wallets. The campaign has included warnings that a new war between Iran and the United States could soon engulf the entire region again, potentially causing people to lose money held electronically.

An official banking source rejected those claims, telling Asharq Al-Awsat that funds held in banks would remain secure and that a shift toward electronic transactions was underway.

The source said banks were routinely updating customer information and identifying account holders’ activities amid concerns that some funds could be linked to money laundering. Banks, the source added, had instructions to facilitate Palestinians’ access to accounts as part of financial inclusion efforts taking place in both Gaza and the West Bank.

Israel recently killed Jabr Moqbel, the owner of a currency-exchange shop and a prominent Al-Qassam Brigades member in Gaza City, in a strike on a vehicle in Deir al-Balah. Mohammed Abu Alwan, a Hamas financial official, was killed in a strike in Khan Younis. A Palestinian Islamic Jihad financial official was seriously wounded Sunday in an attempted assassination west of Gaza City.

The Israeli military said in a recent statement that throughout the war it had killed 16 prominent financial operatives involved in transferring funds and financing Hamas’ military activities. It said the operatives had managed transfers worth more than $1 billion through a network of dozens of money changers in Türkiye and Gaza.

The military said it and the Shin Bet were focusing their efforts on damaging Hamas’ financing capabilities and preventing the rebuilding of its infrastructure and military capabilities.


Yemen: Taiz Fronts Drain Houthis, Target Reinforcements

The Houthis suffer heavy losses during attacks on Yemeni government forces (AFP)
The Houthis suffer heavy losses during attacks on Yemeni government forces (AFP)
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Yemen: Taiz Fronts Drain Houthis, Target Reinforcements

The Houthis suffer heavy losses during attacks on Yemeni government forces (AFP)
The Houthis suffer heavy losses during attacks on Yemeni government forces (AFP)

Yemeni government forces have intensified air and artillery strikes against the Houthis in Taiz governorate as fighting continues along the province’s western, southern and eastern fronts, with no major change in territorial control reported in recent hours, according to military sources and government media.

Government warplanes on Sunday targeted Houthi positions, gatherings and reinforcements across Taiz. Forces involved in the fighting said they had thwarted Houthi infiltration attempts on several fronts, while strikes extended to other positions in Lahj near Bab al-Mandab.

Military and local sources reported that airstrikes hit Houthi positions and gatherings east of Taiz city after the group brought in personnel and military reinforcements. The raids also targeted a Houthi camp and vehicles at Mawiyah Junction, positions on the Al-Akboush front to the southeast, and a reinforcement convoy on 60th Street north of Taiz.

Government forces had earlier announced strikes on a supply convoy on 60th Street, reinforcements in the Hanna area of Al-Wazi’iyah district west of the governorate, and positions and weapons, ammunition and missile depots at the Mawiyah and Al-Dhikra junctions to the east. A Houthi gathering in Al-Suwayda in Hayfan district to the south was also targeted.

Military sources said the raids destroyed vehicles and killed and wounded Houthi fighters, including field commanders, but provided no independently verifiable figures for the losses.

Government forces also used drones to target Houthi positions, vehicles and gatherings on several fronts, indicating an intensified use of airstrikes to counter the group’s military movements and reinforcements.

Infiltration Attempts

On the ground, the Taiz Military Axis command reported that government forces thwarted a Houthi infiltration attempt on the Al-Ahtoub front in Jabal Habashi district west of Taiz and targeted Houthi fighters as they tried to approach government positions in the Hazran area.

Government forces also struck a Houthi vehicle with a mortar round on the Al-Kaddahah front and targeted gatherings on the Al-Aqroudh front southeast of the city.

The developments came as the Taiz, Lahj and Bab al-Mandab fronts remained on high alert, with attacks and counterattacks continuing around high ground and forward positions, particularly along the Jabal Numan, Kahbub, Al-Alaqma and Rasin axes.

Available battlefield information showed no signs of a new Houthi advance. Fighting remained concentrated in forward areas and on the high ground surrounding Jabal Numan, while the Houthis continued attempts to retake parts of positions they had lost along that axis.

At Kahbub, on the road leading to Bab al-Mandab, the Southern Giants Brigades said they targeted Houthi gatherings and vehicles and destroyed an armored vehicle, killing those aboard. Fighting continued on the Al-Wazi’iyah and Al-Mudaraba fronts.

Fighting Expands

The pattern of strikes over the past two days shows the fighting extending from front lines to supply positions, gathering points, camps and weapons depots as Yemeni government forces seek to limit the Houthis’ ability to send fresh reinforcements to the Taiz and Lahj fronts.

Targets have included Mawiyah and Al-Dhikra junctions east of Taiz, Al-Hawban, 60th Street north of the city, Hayfan to the south and Al-Wazi’iyah to the west, as well as positions in neighboring Ibb governorate.

The fighting is therefore no longer confined to direct clashes over high ground, with Houthi supply lines and military movements repeatedly targeted by airstrikes.

The Houthis, meanwhile, continued attempts to pressure several fronts, particularly the western axes, which are important because of their proximity to the road leading to coastal areas and Bab al-Mandab, where they are seeking to secure their gains.

The intensified military operations come amid indications of rising Houthi casualties. The group acknowledged the death of Majd al-Din Hamid al-Hamzi, whom military sources said was head of operations for the Third Missile Brigade, along with several of his escorts following fighting on the western coast fronts.

Yemeni monitoring data indicated that Houthi media outlets and affiliated platforms announced funerals for 422 members of the group in September, including officers and military commanders.

Sources that compiled the figures said the number did not represent the Houthis’ total losses because the group does not regularly announce all its dead. Some funerals are delayed, while others are buried without media coverage, and bodies remaining in hospitals or combat zones are not included in the tally.

The sources reported that 60 Houthi fighters were buried last Friday alone after being killed on various fronts. Losses were particularly concentrated on the Taiz and Lahj fronts, according to local reports.

The fighting was also accompanied by reports of fighters’ bodies remaining in some combat areas, prompting local appeals for the Red Cross and Red Crescent to retrieve them amid fears of humanitarian and environmental consequences.


Dutch FM Regrets Israel's Decision to Revoke Diplomats' Accreditation

Dutch Minister of Foreign Affairs Tom Berendsen arrives for a Council of Ministers meeting at the Ministry of General Affairs in The Hague, the Netherlands, 18 September 2026.  EPA/KOEN VAN WEEL
Dutch Minister of Foreign Affairs Tom Berendsen arrives for a Council of Ministers meeting at the Ministry of General Affairs in The Hague, the Netherlands, 18 September 2026. EPA/KOEN VAN WEEL
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Dutch FM Regrets Israel's Decision to Revoke Diplomats' Accreditation

Dutch Minister of Foreign Affairs Tom Berendsen arrives for a Council of Ministers meeting at the Ministry of General Affairs in The Hague, the Netherlands, 18 September 2026.  EPA/KOEN VAN WEEL
Dutch Minister of Foreign Affairs Tom Berendsen arrives for a Council of Ministers meeting at the Ministry of General Affairs in The Hague, the Netherlands, 18 September 2026. EPA/KOEN VAN WEEL

The Netherlands said Monday it regretted Israel's decision to revoke the diplomatic accreditation of Dutch officials based in the West Bank over the country's sanctions on goods from Israeli settlements.

"I deeply regret this unnecessary decision," Foreign Minister Tom Berendsen said, adding that the decision by The Hague to suspend imports from the occupied territories in the West Bank was "not directed against Israel.”

Israel earlier this month ordered the closure of the British Consulate in East Jerusalem, which is Britain's representative with the Palestinian Authority, after London announced similar sanctions banning the import of goods from settlements.

Israeli Foreign Minister Gideon Saar said on X that Dutch diplomats operating in Ramallah ⁠must return their ⁠Israeli-issued diplomatic documentation within seven days, when their diplomatic privileges and immunities are due to expire.

"Any country that acts in a hostile and unilateral manner against Israel will lose influence and relevance in the region," Saar said.