Sanctions Relief in Syria Could Unlock Economic Opportunities for Lebanon

Lebanon is eyeing a potential economic windfall from the recent easing of sanctions on Syria, with officials in Beirut hopeful the shift could unlock stalled energy deals and open new trade routes across the region, government sources told Al-Liwaa daily.

According to the sources, Lebanon stands to benefit in several ways if the lifting of sanctions, particularly those under the U.S. Caesar Act, ushers in a more stable and open Syrian economy. Lebanese companies could directly participate in Syria’s long-delayed reconstruction, while international firms involved in the rebuilding process might use Lebanon as a logistical base.

“The country could become a key transit point for global reconstruction efforts in Syria,” one official said, noting the potential for international financing already hinted at by Western pledges.

The end of sanctions could also revive regional energy cooperation. A U.S.-backed agreement between Lebanon, Egypt, Jordan, and Syria to import Egyptian gas and Jordanian electricity was frozen after concerns that Egypt and Jordan could fall afoul of the Caesar Act. With sanctions being rolled back, government officials believe the project could finally move forward.

Lebanon may also be able to benefit from Qatari gas reaching Syria through existing pipelines that cross Lebanese territory, the sources said.

Beyond energy, officials pointed to broader benefits tied to regional trade and transportation. The reopening of land corridors through Syria could reestablish Lebanon’s overland trade links to Jordan, Iraq, and Gulf countries; these routes have been largely disrupted since the outbreak of Syria’s civil war in 2011.

Additionally, sources highlighted the potential to revisit bilateral agreements with Damascus aimed at regulating the shared land border. These agreements would cover border security, the movement of Syrian labor into Lebanon, and the legal management of cross-border trade and transit. A long-standing goal of finalizing formal border demarcation between the two countries could also regain momentum.

However, officials cautioned that Lebanon’s ability to capitalize on these opportunities hinges on how quickly Syria moves to implement domestic reforms and stabilize conditions on the ground.

“The actual benefits will only begin to materialize once Syria undertakes the necessary internal steps to absorb the sanctions relief, particularly with regard to reconstruction and the reassertion of state authority,” one official noted.

Once those steps are underway, Lebanon would be ready to engage in negotiations with Syrian authorities on a range of unresolved matters, including reconstruction participation, trade agreements, and transport and transit arrangements.

While wary of past complications, Lebanese officials do not anticipate U.S. opposition to future deals with Syria.

“As long as Washington continues to emphasize that its priority is Lebanon’s stability and prosperity, there should be no American obstruction,” one source said.

Still, the timeline for Lebanon’s gains remains unclear.

“There’s no way to predict how long this will take. It depends entirely on how fast Syria acts to normalize its engagement with neighboring countries, including Lebanon, and to fulfill the conditions set out during President Trump’s recent meeting with Syrian President Ahmad al-Sharaa in Saudi Arabia,” the source added.

The U.S. president, who met al-Sharaa in Riyadh earlier this week, reportedly urged Syria to join the Abraham Accords and move away from Iranian influence. According to Trump, al-Sharaa signaled openness to the idea, though he acknowledged that Syria had “a lot of work to do” before normalization could proceed.