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Breaking Down Trump's Plan to Lift U.S. Sanctions on Syria

Breaking Down Trump's Plan to Lift U.S. Sanctions on Syria

President Donald Trump announced on Tuesday, May 13, that he plans to end the U.S. sanctions imposed on Syria, which have been in place for over 45 years.
Announcing the news on the first day of his Middle East tour, during the U.S.-Saudi Investment Forum, Trump said he would be lifting sanctions 'in order to give them [Syria] greatness.'
Trump described the sanctions as 'brutal and crippling,' but also noted their important function before the collapse of the Bashar Assad regime in December 2024.
The announcement was met with jubilant celebrations in the Syrian capital of Damascus, as people in the streets cheered and waved Syrian flags.
On Wednesday morning, before departing for Doha, Qatar, Trump met with Syrian President Ahmed al-Sharaa. They were accompanied by Saudi Crown Prince Mohammed bin Salman, while Turkish President Recep Tayyip Erdoğan joined remotely via telephone.
While travelling to Doha on Air Force One, Trump shared with reporters his impression of al-Sharaa, calling him a "young, attractive guy. Tough guy. Strong past. Very strong past. Fighter… He's got a real shot at holding it together.'
Shiraz Maher, a writer and lecturer of war studies at King's College London, says that Trump's announcement shows 'an explicit vote of confidence in the new Administration. It gives Syria a new opportunity.'
'I see this as something that Obama tried to do, leading from behind, removing obstacles, and giving Syria an opportunity to do it their way.'
In a post-meeting update shared on X, White House press secretary Karoline Leavitt said that Trump urged al-Sharaa to sign the Abraham Accords to normalize relations with Israel. He also encouraged al-Sharaa to remove foreign terrorists from Syria and help the United States prevent the resurgence of ISIS.
The Abraham Accords, established during Trump's first term, involve a number of Arab and Muslim states normalizing diplomatic and economic ties with Israel.
Since the collapse of the Assad regime in December, Israel has conducted airstrikes within Syria, recently near Damascus, citing violence in Druze areas. Israeli forces have also reportedly expanded military operations beyond the Israeli-occupied Golan Heights in the southwest corner of Syria.
What are the U.S. sanctions in place on Syria?
The Assad government was first designated by the U.S. as a state sponsor of terrorism in 1979. Since then, sanctions on the country were upgraded in 2004 and again in 2011, when the Syrian Civil War broke out.
As part of the sanctions, assets and property of Syrian officials in the U.S. were frozen and a ban was placed on petroleum and petroleum products of Syrian origin.
Since 2011, Syria and its population has been almost entirely cut off from the global economy, with residents facing difficulties using international bank cards or importing foreign goods amid the crippling civil war.
Maher sees the proposed lifting of the sanctions as a crucial change for the Syrian people. 'The situation is incredibly desperate, [some] people have two hours of electricity per day and face hyperinflation. This is a really important signal that this can change,' he says.
Remarking on the social media commentary he's seen since the news broke, Maher says he came across a commenter who said: 'Being able to use Apple Pay in [the Syrian city of] Idlib is not something I could have imagined.'
A more recent additional set of sanctions, implemented under the Caesar Syria Civilian Protection Act of 2019, imposed further restrictions on the Assad regime and its supporters.
Aaron Y. Zelin, a senior fellow at The Washington Institute for Near East Policy, says that this set of sanctions, in particular, could be hard to unravel.
'Congress enacted this, so the Trump Administration now has to get Congress on board to unwind those in many respects,' says Zelin.
Difficulties aside, Trump's announcement is 'huge, monumental news for the Syrian government,' says Zelin, adding that this move gives the government more legitimacy and opportunity for rebuilding and investment.
'Syrians will have more access to capital and be part of the global economy once again. Right now, everything is a cash economy,' he says.
But exactly how long will it be until these changes are felt?
Benjamin Fève, a senior research analyst at Karam Shaar Advisory Limited, has argued that officially lifting sanctions on Syria 'isn't as simple as Trump just declaring it' and that it will 'require a lengthy process.'
'We can only hope that they'll make the process as quick as possible,' he said via a post on X. 'One way or the other this announcement will have to be followed by concrete actions.'
Wider impact in the region
Given the interest directed toward Syria from a number of regional countries and global powers since the end of the civil war, Trump's proposal to lift sanctions on the country goes beyond its borders. 'This really changes the game in terms of the status of the region. This will further shut out Iran and its ability to link up between proxies,' says Zelin.
Hezbollah's ability to work with Iran could be further diminished, coupled with its recent decline in capability. The militant Lebanese group has taken significant hits in its conflict with Israel, and lost an important partner in Assad when he fled Syria in December and sought asylum in Russia.
'Qatar and the UAE will be very happy. The Russians will play a wait-and-see approach, they might view this [sanctions news] as a general positive, as they might invest as well depending on how much the U.S. wants to become a new partner of the Syrian government,' says Zelin.
If the U.S.becomes more engaged with the Syrian government, Russia will likely find it increasingly difficult to continue its presence in Syria, in particular with its supply of oil to the country.
Russia has been Syria's major oil supplier since Assad's departure, but this could change with Trump's plans. Zelin muses that Russia 'might leverage' its oil supply 'to garner closer ties' with Syria.
Qatar has previously said it would provide funding of up to $89 million over three months to Syria in order to pay public sector wages, ultimately holding off due to U.S. sanctions. Now, however, this deal could accelerate, as Zelin suggests that Qatar could fund even more government bills after Trump's announcement.
Who is Syrian President Ahmed al-Sharaa?
President al-Sharaa has become a key figure in the Middle East.
In just under two weeks, al-Sharaa's group Hay'at Tahrir al-Sham (HTS) led a rebel coalition to overthrow Assad. HTS had held control of the northern province of Idlib in recent years, and the group was designated a terrorist organization by the United States not long after its formation.
Just before the 2003 U.S. invasion of Iraq, al-Sharaa, then known under his nom-de-guerre Abu Mohammad al-Jolani, travelled to Baghdad. He would spend the next few years with al-Qaeda, recruiting members and rising through the ranks before being arrested and held in a former U.S. prison at Camp Bucca in Iraq.
As the Syrian civil war raged on, al-Sharaa returned to his home country, helping establish al-Qaeda's affiliate group, the al-Nusra Front. But the militant leader went on to cut ties with the organization in 2016, going on to establish the HTS.
The U.S. previously had a $10 million reward for the arrest of al-Sharaa. The bounty was scrapped in late December.
Since taking leadership of Syria's new government, al-Sharaa has met with France's President Emmanuel Macron and has established strong ties with Turkey. Wednesday's meeting with Trump is perhaps the most important for Syria's President yet.
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"This revised guidance reflects improved pricing, particularly in DRAM, and strong execution," the company said in a statement. Micron's DRAM chips are one type of memory chip used in devices like personal computers and smartphones. Stocks steady at the open US stocks were steady at the open on Monday after the Nasdaq Composite (^IXIC) notched two consecutive records last week. The Dow Jones Industrial Average (^DJI) rose nearly 0.1%. The S&P 500 (^GSPC) and the tech-heavy Nasdaq (^IXIC) hovered above the flat line. Chip stocks were in focus Monday after Nvidia (NVDA) and AMD (AMD) reportedly inked deals with the US government to sell their chips to China in exchange for sharing 15% of their revenues from the country. Nvidia shares fell less than 1% on Monday, while AMD shares lost over 1.5%. Looking ahead this week, investors are awaiting a key inflation reading and the upcoming summit between President Trump and Russian President Putin. US stocks were steady at the open on Monday after the Nasdaq Composite (^IXIC) notched two consecutive records last week. The Dow Jones Industrial Average (^DJI) rose nearly 0.1%. The S&P 500 (^GSPC) and the tech-heavy Nasdaq (^IXIC) hovered above the flat line. Chip stocks were in focus Monday after Nvidia (NVDA) and AMD (AMD) reportedly inked deals with the US government to sell their chips to China in exchange for sharing 15% of their revenues from the country. Nvidia shares fell less than 1% on Monday, while AMD shares lost over 1.5%. Looking ahead this week, investors are awaiting a key inflation reading and the upcoming summit between President Trump and Russian President Putin. Paramount seals $7.7 billion exclusive US rights deal with UFC Paramount has agreed to a seven-year, $7.7 billion deal to become the exclusive US broadcaster of the Ultimate Fighting Championship (UFC). The agreement is Paramount's largest since David Ellison took over as chair and CEO last week, following the completion of Skydance's takeover of the company. Under the contract, Paramount will stream all 13 of UFC's marquee events and 30 Fight Nights annually on its streaming platform from 2026, with selected events also broadcast on CBS, the Financial Times reported. The FT reports: Read more here (subscription required). Paramount has agreed to a seven-year, $7.7 billion deal to become the exclusive US broadcaster of the Ultimate Fighting Championship (UFC). The agreement is Paramount's largest since David Ellison took over as chair and CEO last week, following the completion of Skydance's takeover of the company. Under the contract, Paramount will stream all 13 of UFC's marquee events and 30 Fight Nights annually on its streaming platform from 2026, with selected events also broadcast on CBS, the Financial Times reported. The FT reports: Read more here (subscription required). AMC tops revenue estimates as blockbuster titles boost theater attendance AMC (AMC) stock jumped 8% in premarket trading after the movie theater chain reported attendance in the second quarter grew nearly 26% as blockbusters drew in moviegoers. Reuters reports: Read more here. AMC (AMC) stock jumped 8% in premarket trading after the movie theater chain reported attendance in the second quarter grew nearly 26% as blockbusters drew in moviegoers. Reuters reports: Read more here. Nvidia, AMD stocks decline after chipmakers agree to pay US 15% cut of China chip sales Shares of Nvidia (NVDA) and AMD (AMD) fell on Monday after the two companies agreed to pay the US government 15% of the revenue for certain chip sales to China. Nvidia stock was off by 0.4% premarket, while AMD stock dropped 1.4% as investors digested the unusual deal in which the chipmakers will essentially pay for export licenses. While the details are still being worked out, the chips in question reportedly include Nvidia's H20 AI chip and AMD's MI308 chips, which previously faced export controls from the Trump administration. Nvidia CEO Jensen Huang made the deal at the White House last Wednesday, the same day Apple (AAPL) agreed to increase its US investment to $600 billion, ostensibly to help the company avoid tariffs, as the Trump administration looks to monetize trade policy. An Nvidia spokesperson told Yahoo Finance: 'We follow rules the U.S. government sets for our participation in worldwide markets. While we haven't shipped H20 to China for months, we hope export control rules will let America compete in China and worldwide. America cannot repeat 5G and lose telecommunication leadership. America's AI tech stack can be the world's standard if we race." As for other chip stocks, Intel (INTC) and Qualcomm (QCOM) shares rose, while Taiwan Semiconductor (TSM) fell modestly. Read more here. Shares of Nvidia (NVDA) and AMD (AMD) fell on Monday after the two companies agreed to pay the US government 15% of the revenue for certain chip sales to China. Nvidia stock was off by 0.4% premarket, while AMD stock dropped 1.4% as investors digested the unusual deal in which the chipmakers will essentially pay for export licenses. While the details are still being worked out, the chips in question reportedly include Nvidia's H20 AI chip and AMD's MI308 chips, which previously faced export controls from the Trump administration. Nvidia CEO Jensen Huang made the deal at the White House last Wednesday, the same day Apple (AAPL) agreed to increase its US investment to $600 billion, ostensibly to help the company avoid tariffs, as the Trump administration looks to monetize trade policy. An Nvidia spokesperson told Yahoo Finance: 'We follow rules the U.S. government sets for our participation in worldwide markets. While we haven't shipped H20 to China for months, we hope export control rules will let America compete in China and worldwide. America cannot repeat 5G and lose telecommunication leadership. America's AI tech stack can be the world's standard if we race." As for other chip stocks, Intel (INTC) and Qualcomm (QCOM) shares rose, while Taiwan Semiconductor (TSM) fell modestly. Read more here. Good morning. Here's what's happening today. Earnings: (BBAI), (MNDY), Oklo (OKLO), Plug Power (PLUG) Economic calendar: No notable releases. Here are some of the biggest stories you may have missed overnight and early this morning: Nvidia, AMD revenue deal brings 'monetization of US trade policy' Yahoo Finance poll: Americans face new, complex financial challenges Earnings live: stock tanks, AMC to report Debate over Fed rate cuts heats up: What to watch this week Fed's Bowman makes case for 3 interest rate cuts in 2025 Intel CEO to visit White House on Monday Citi strategists raise S&P 500 target on resilient earnings Bitcoin Nears Record as Treasury Investors Boost Crypto Market BofA poll shows record number of investors say stocks overvalued Lithium market soars as CATL shuts one of world's biggest mines Earnings: (BBAI), (MNDY), Oklo (OKLO), Plug Power (PLUG) Economic calendar: No notable releases. Here are some of the biggest stories you may have missed overnight and early this morning: Nvidia, AMD revenue deal brings 'monetization of US trade policy' Yahoo Finance poll: Americans face new, complex financial challenges Earnings live: stock tanks, AMC to report Debate over Fed rate cuts heats up: What to watch this week Fed's Bowman makes case for 3 interest rate cuts in 2025 Intel CEO to visit White House on Monday Citi strategists raise S&P 500 target on resilient earnings Bitcoin Nears Record as Treasury Investors Boost Crypto Market BofA poll shows record number of investors say stocks overvalued Lithium market soars as CATL shuts one of world's biggest mines stock tanks after the company reports earnings stock plunged aorund 20% in premarket trading on Monday after the Israeli-based software company reported earnings. In the second quarter, reported earnings of $0.03 per share and revenue of $299 million. While revenue beat analyst expectations of $293 million, GAAP profits fell short, as Wall Street was looking for $0.20 per share, per S&P Global Market Intelligence. Investors have been looking for signs that economic uncertainty is pushing companies to pull back their spending on technology and software. The company's operating loss fell to $11.6 million from $1.8 million a year ago, and the operating margin fell to negative 4% from 1% last year. Read more live coverage of corporate earnings here stock plunged aorund 20% in premarket trading on Monday after the Israeli-based software company reported earnings. In the second quarter, reported earnings of $0.03 per share and revenue of $299 million. While revenue beat analyst expectations of $293 million, GAAP profits fell short, as Wall Street was looking for $0.20 per share, per S&P Global Market Intelligence. Investors have been looking for signs that economic uncertainty is pushing companies to pull back their spending on technology and software. The company's operating loss fell to $11.6 million from $1.8 million a year ago, and the operating margin fell to negative 4% from 1% last year. Read more live coverage of corporate earnings here US gold futures fall as traders await clarification on tariffs US gold futures (GC=F) in New York fell 2% as traders waited for the White House to clarify its tariff policy. Last week, the US Customs and Border agency surprised the market by ruling that 100oz and 1kg gold bars would face tariffs. Bloomberg News reports: Read more here. US gold futures (GC=F) in New York fell 2% as traders waited for the White House to clarify its tariff policy. Last week, the US Customs and Border agency surprised the market by ruling that 100oz and 1kg gold bars would face tariffs. Bloomberg News reports: Read more here. Target still in the bear camp Good WSJ story this morning on Target (TGT) and its many challenges, one of them finding its next CEO. I wrote more on this a couple months ago. I would expect an abysmal quarter (another one) from Target when it reports second quarter earnings on August 20. The company is not only dealing with operational challenges, but it has totally lost the value perception battle with Walmart. I don't see these dynamics changing this year, and maybe not until deep into 2026 provided an outside CEO is brought in to run a full assessment of the business. Good WSJ story this morning on Target (TGT) and its many challenges, one of them finding its next CEO. I wrote more on this a couple months ago. I would expect an abysmal quarter (another one) from Target when it reports second quarter earnings on August 20. The company is not only dealing with operational challenges, but it has totally lost the value perception battle with Walmart. I don't see these dynamics changing this year, and maybe not until deep into 2026 provided an outside CEO is brought in to run a full assessment of the business. Bitcoin near a fresh record Bitcoin looks to be breaking out of its recent trading range, nearing a fresh record this morning. There doesn't appear to be a clear catalyst for the pop today, though this Sunday X post from bitcoin evangelist Michael Saylor may have stoked the bulls. It suggests he will continue to be a buyer of bitcoin — perhaps no surprise, but the crypto market likes to be coddled. "If you don't stop buying Bitcoin, you won't stop making Money," Saylor wrote. Bitcoin looks to be breaking out of its recent trading range, nearing a fresh record this morning. There doesn't appear to be a clear catalyst for the pop today, though this Sunday X post from bitcoin evangelist Michael Saylor may have stoked the bulls. It suggests he will continue to be a buyer of bitcoin — perhaps no surprise, but the crypto market likes to be coddled. "If you don't stop buying Bitcoin, you won't stop making Money," Saylor wrote. crashing Shares of (AI) are getting crushed pre-market to the tune of 30%. And the rout is 100% deserved. Late Friday the company said it sees preliminary first fiscal quarter revenue of $70.2 million to $70.4 million, about 33% below the mid-point of its prior guidance for $100 million to $109 million. Sales would be down 19% from the prior year. The adjusted operating loss will be $57.7 million to $59.9 million, roughly twice the $23.5 million to $33.5 million loss that it had expected. I don't think there is anything to read into the AI trade here — this seems very company-specific, and tied to a sales reorg. Shares of (AI) are getting crushed pre-market to the tune of 30%. And the rout is 100% deserved. Late Friday the company said it sees preliminary first fiscal quarter revenue of $70.2 million to $70.4 million, about 33% below the mid-point of its prior guidance for $100 million to $109 million. Sales would be down 19% from the prior year. The adjusted operating loss will be $57.7 million to $59.9 million, roughly twice the $23.5 million to $33.5 million loss that it had expected. I don't think there is anything to read into the AI trade here — this seems very company-specific, and tied to a sales reorg. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

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