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Trump to lift Syria sanctions, signs $600 billion deal with Saudi Arabia

Trump has not scheduled a stop in Israel, raising questions about where the close ally stands in Washington’s priorities as Trump presses Israeli Prime Minister Benjamin Netanyahu to agree to a new ceasefire deal in the 19-month-old Gaza war.

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President Donald Trump kicked off his trip to the Gulf on Tuesday with a surprise announcement that the United States will lift long-standing sanctions on Syria, and a $600 billion commitment from Saudi Arabia to invest in the U.S, Reuters reported.

The U.S. agreed to sell Saudi Arabia an arms package worth nearly $142 billion, according to the White House which called it the largest “defense cooperation agreement” Washington has ever done.

The end of sanctions on Syria would be a huge boost for a country that has been shattered by more than a decade of civil war. Rebels led by current President Ahmed al-Sharaa toppled President Bashar al-Assad last December.

Speaking at an investment forum in Riyadh at the start of a deals-focused trip that also brought a flurry of diplomacy, Trump said he was acting on a request to scrap the sanctions by Saudi Arabia’s de facto ruler, Prince Mohammed bin Salman.

“Oh what I do for the crown prince,” Trump said, drawing laughs from the audience. He said the sanctions had served an important function but that it was now time for the country to move forward.

The move represents a major U.S. policy shift. The U.S. declared Syria a state sponsor of terrorism in 1979, added sanctions in 2004 and imposed further sanctions after the civil war broke out in 2011.

Syrian Foreign Minister Asaad al-Shibani said on X that the planned move marked a “new start” in Syria’s path to reconstruction. Trump has agreed to briefly greet Sharaa in Saudi Arabia on Wednesday, a White House official said.

Trump and the Saudi crown prince signed an agreement covering energy, defense, mining and other areas. Trump has sought to strengthen relations with the Saudis to improve regional ties with Israel and act as a bulwark against Iran.

The agreement covers deals with more than a dozen U.S. defense companies for areas including air and missile defense, air force and space, maritime security and communications, a White House fact sheet said.

It was not clear whether the deal included Lockheed F-35 jets, which sources say have been discussed. The Saudi prince said the total package could reach $1 trillion when further agreements are reached in the months ahead.

Saudi Arabia is one of the largest customers for U.S. arms, and the two countries have maintained strong ties for decades based on an arrangement in which the kingdom delivers oil and the superpower provides security.

But relations were strained after the 2018 murder of U.S.-based Saudi journalist Jamal Khashoggi by Saudi agents in Istanbul caused a global uproar. U.S. intelligence concluded that bin Salman approved an operation to capture or kill Khashoggi, a prominent critic, but the Saudi government has denied any involvement.

Trump did not mention the incident during his visit and called bin Salman an “incredible man.”

“I really believe we like each other a lot,” Trump said.

Trump will go on from Riyadh to Qatar on Wednesday and the United Arab Emirates on Thursday in a trip that is focused on investment rather than security matters in the Middle East, read the report.

Several U.S. business leaders attended the event, including Elon Musk, the Tesla chief who has led a government-downsizing effort for Trump in Washington; OpenAI CEO Sam Altman; BlackRock CEO Larry Fink and Blackstone CEO Stephen Schwarzman.

Trump was shown speaking with several Saudi officials, including sovereign wealth fund governor Yasir al-Rumayyan, Aramco CEO Amin Nasser and investment minister Khalid al-Falih as he viewed models for the kingdom’s flashy, multi-billion-dollar development projects.

Bin Salman has focused on diversifying the Saudi economy in a major reform program dubbed Vision 2030 that includes “Giga-projects” such as NEOM, a futuristic city the size of Belgium. Oil generated 62% of Saudi government revenue last year.

The kingdom has scaled back some of its ambitions as rising costs and falling oil prices weigh.

Trump has not scheduled a stop in Israel, raising questions about where the close ally stands in Washington’s priorities as Trump presses Israeli Prime Minister Benjamin Netanyahu to agree to a new ceasefire deal in the 19-month-old Gaza war.

Israel’s military operations against Hamas in Gaza and Hezbollah in Lebanon, and its assassinations of the two Iran-allied groups’ leaders, have at the same time given Trump more leverage by weakening Tehran and its regional allies, Reuters reported.

Trump said it was his “fervent hope” that Saudi Arabia would soon normalize relations with Israel, following other Arab states that did so during his first 2017-2021 term. “But you’ll do it in your own time,” he said.

Netanyahu’s opposition to the creation of a Palestinian state makes progress with the Saudis unlikely, sources told Reuters.

Trump on Tuesday called Iran “the most destructive force” in the Middle East and warned that the U.S. will never allow it to obtain a nuclear weapon. He said he was willing to strike a new deal with the Islamic Republic but only if its leaders changed course.

“I want to make a deal with Iran,” he said. “But if Iran’s leadership rejects this olive branch… we will have no choice but to inflict massive maximum pressure.”

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Iran, US continue escalating attacks, recriminations over peace deal

US Central Command said earlier that its forces had carried out fresh strikes after a Panama-flagged tanker was attacked by an Iranian drone on Saturday.

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Iran and the US continued their attacks in the Gulf as each accused the ​other of violating an increasingly precarious interim deal signed less than two weeks ago to end their four-month-old war, Reuters reported.

Shortly after President Donald Trump warned the US might “militarily complete the job”, Iran early on Sunday ‌launched missiles and drones on US military sites in Kuwait and Bahrain, continuing a series of escalating attacks.

Beyond the Gulf, Israel said it had struck Iran-backed Hezbollah militants in southern Lebanon as fighting continued in an area Tehran says is key to its peace deal with Washington.

The U.S. military said earlier it had struck Iran again, hours after a tanker was hit in the Strait of Hormuz, the world’s most important energy shipping route, which Iran had largely cut off for most of ​the conflict.

The 14-point U.S.-Iran interim agreement was meant to halt the fighting, which the US and Israel started on February 28, and reopen the strait to shipping while ​talks proceeded on more deep-seated issues, such as Iran’s nuclear programme.

One round of mediated talks, led by Vice President JD Vance and Iran’s parliamentary speaker, Mohammad Baqer Qalibaf, ⁠was held in Switzerland a week ago and Washington then waived sanctions on Tehran, but the fighting and recriminations have since resumed and intensified.

“There may come a point when we are no longer able to be ​reasonable, and will be forced to militarily complete the job that we very successfully started,” Trump posted on social media. “If that happens, the Islamic Republic of Iran will no longer exist!”

About an hour after Trump’s post, ​the Kuwaiti army said its air defences were responding to “hostile” missile and drone attacks, while sirens sounded in Bahrain, according to that country’s interior ministry.

Iran’s Islamic Revolutionary Guard Corps said its navy and air forces had launched missile and drone operations targeting US military sites in Kuwait and Bahrain in response to recent US strikes against Iran, read the report.

The Guards said in a statement the US strikes had violated the ceasefire and “will result in the complete halt of all diplomatic processes”, according to state-run Press ​TV. The IRGC navy command said American bases in the region “will experience hell in the coming days”.

A US official, confirming the attacks on US facilities, told Reuters there were no reported US casualties or major damage to US ​sites in the Middle East but that the situation was still unfolding.

Hours later, alarms sounded for a second time in Bahrain, and the foreign ministry there condemned the attacks as a deliberate and repeated violation of the kingdom’s sovereignty ‌and security. It ⁠urged the U.N. Security Council to hold an urgent session to hold Iran accountable.

US Central Command said earlier that its forces had carried out fresh strikes after a Panama-flagged tanker was attacked by an Iranian drone on Saturday.

“Iran was given a chance to honor the ceasefire agreement but elected not to,” Central Command said in a statement, adding that its strikes were “in direct response to continued Iranian aggression against commercial shipping” and targeted Iranian military surveillance, communications, air defence, drone storage and mine-laying facilities.

Iranian state broadcaster IRIB said explosions were heard in Sirik in southern Iran, without providing details. The Guards said “America’s blind shots at ​Sirik will not resolve our dominance over the Strait ​of Hormuz. But our shots at violators will ⁠remind the rest of the vessels of the clear passage route.”

Saturday’s tanker attack in the strait followed one on a cargo ship on Thursday that triggered the latest escalation. Iran is seeking to assert control over the strait, which carried one-fifth of global oil and LNG supplies before the war and which had just begun ​to reopen after months of disruption, Reuters reported.

Hundreds of ships, including tankers laden with oil, have been blockaded inside the Gulf since war broke out. As they began ​leaving through the strait over ⁠the past two weeks, oil prices have tumbled close to pre-war levels on the surge in supply.

Washington has been promoting a southern lane along the coast of Oman, while Tehran, which ultimately aims to charge fees for use of the strait, wants ships to use a northern route through its waters and under its control.

In Lebanon, Israel said on Sunday it had killed Hezbollah militants armed with rocket-propelled grenades and struck a rocket launcher in the ⁠Nabatieh area.

Iran ​accuses the US of violating its commitment under the peace deal to sustaining a ceasefire in Lebanon, which US ally Israel invaded ​in March in pursuit of Hezbollah.

Israel, which is not a party to the US-Iran deal, and Lebanon have repeatedly agreed to US-brokered ceasefires, the latest on Friday. But these have had only limited effect, with Israel insisting it will not withdraw from Lebanese territory it ​has seized and Hezbollah repeatedly rejecting calls to give up its arms as long as Israeli troops remain in place.

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US strikes Iran in response to attack on cargo ship in Strait of Hormuz

The U.S. did not immediately respond to Iran’s report of striking American targets, a tactic that has sought to undermine U.S. allies in the region during the conflict.

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The U.S. military attacked Iran on Friday in response to an Iranian drone strike on a cargo ​ship in the Strait of Hormuz, with each country accusing the other of violating terms of a ceasefire agreed on last week, Reuters reported.

U.S. Central Command said aircraft struck missile and drone ‌storage locations and coastal radar sites, later publishing a grainy black-and-white video of an explosion labeled “unclassified.” A U.S. official reported the operation had concluded.

Iran said a projectile struck the area around a pier in Sirik in southern Iran, and that Iranian naval forces responded by striking U.S. military targets in the region. Tehran did not provide details about what may have been hit.

Elsewhere, however, there were signs of progress in ending the four-month-old conflict, as Israel and Lebanon signed an agreement to end the fighting between Israel ​and Iran-backed Hezbollah. Both sides framed the deal as an initial step that calls for Hezbollah to disarm and Israel to withdraw troops from Lebanon, but it was not clear how it would ​be enforced. Hezbollah said it would not cooperate.

Tehran has said it would control the Strait of Hormuz and warned Gulf ⁠states not to side with Washington after Thursday’s attack on a cargo ship traveling near Oman’s coast. President Donald Trump blamed the attack on Iran and said it violated last week’s interim agreement.

“The unwarranted aggression against commercial shipping by ​Iranian forces clearly violated the ceasefire,” U.S. Central Command said in its statement announcing strikes, which it called “a powerful response to yesterday’s attack on a commercial ship that was transiting the Strait of Hormuz.”

The U.S. military said it ​would continue to provide “safe passage coordination and support” to commercial vessels transiting the strait.

Vice President JD Vance, once seen as a skeptic on U.S. intervention in Iran but now a Trump administration point person on the conflict, said the Americans have honored the ceasefire deal, also known as a memorandum of understanding.

“Iran signed a ceasefire agreement. We have honored it. If they have disagreements about how the MOU is being applied, they can pick up the phone. But violence will be met with violence,” ​Vance said on X.

Iranian state media, citing an unnamed military source, reported the strike at the port of Sirik after an explosion was heard there. The source said several warning shots had been fired from Sirik ​toward vessels that violated Strait of Hormuz regulations about five hours earlier, adding two warning missiles had also been launched from the nearby Karpan area toward the strategic waterway, read the report.

On Saturday, Iran’s Mehr news agency cited the head of ports at ‌eastern Hormozgan as ⁠saying that there was no damage to the port of Sirik after the attack by the U.S. The official said the port was operating normally with no damage reported to facilities and equipment.

Iran’s Revolutionary Guards said that in response its navy “struck the locations where the terrorist U.S. military is stationed in the region” and warned that any further U.S. attacks would be met with a broader response, according to the statement carried on state media.

The ceasefire agreement gives Iran control over ship traffic in the strait, the Guards said.

“However, the United States, by provoking various fronts, sought to violate this commitment, and the necessary response was given and will continue to be given. ​If the aggression is repeated, our response will ​be broader than this,” the Revolutionary Guards said.

The U.S. did not immediately respond to Iran’s report of striking American targets, a tactic that has sought to undermine U.S. allies in the region during the conflict.

Ebrahim Azizi, the head of the Iranian parliament’s national security committee, said in response to the latest strikes that Trump has failed to show a ​commitment to the principles of negotiation or ceasefire.

“This reckless violation of the ceasefire will, as always, lead to retreat and regret on their part,” Azizi posted ​on X.

Before the renewed outbreak ⁠of violence, oil prices fell about 3% on Friday, on course for steep weekly losses, in response to oil tankers exiting the Strait of Hormuz, the conduit for one-fifth of global oil and LNG supplies before the U.S. and Israel launched the war on February 28, Reuters reported.

Saudi Aramco resumed crude loadings at its Ras Tanura terminal in the Gulf, the world’s biggest oil port, after a nearly four-month halt, shipping data showed.

Fertilizer shipments through the strait have also picked up, helping to ⁠assuage concerns ​about a spike in global food prices.

U.S. Secretary of State Marco Rubio — wrapping up a tour of the Gulf to reassure regional allies ​about the interim pact — issued a joint statement with the Gulf Cooperation Council calling for “free, unconditional, and unrestricted navigation” in the strait without tolls or “attempts to assert control.”

Iran’s foreign ministry said the strait should be governed by Iran and Oman, while Ali Akbar Velayati, top adviser ​to Iran’s supreme leader, warned Washington’s Gulf allies their survival depended on Tehran’s tolerance.

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Iran’s Pezeshkian says without missiles his country would be ‘just like Gaza’

The Iranian president stressed that Tehran’s defensive capabilities are not open to negotiation.

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Iranian President Masoud Pezeshkian has defended Iran’s ballistic missile program, saying the country would have suffered the same fate as Gaza without its missile capabilities.

Speaking during a visit to Pakistan, which has played a mediating role in discussions between Tehran and Washington aimed at securing a lasting end to the Middle East conflict, Pezeshkian said Iran’s missiles serve as a critical deterrent.

“If the missiles we have for our defense did not exist, Israel and the United States would have ploughed Iran just like Gaza, showing no mercy to either the old or the young,” he said.

The Iranian president stressed that Tehran’s defensive capabilities are not open to negotiation.

“We will never negotiate with anyone, under any circumstances, ever, about our defensive capabilities,” he added.

Before the recent conflict, the United States had pushed for Iran’s ballistic missile program and its support for regional armed groups to be included in talks over Tehran’s nuclear activities.

However, U.S. President Donald Trump has recently signaled a more flexible position on the missile issue. Speaking at the G7 summit in France last week, Trump said, “If other countries have them, it’s a little unfair for them not to have some,” referring to missile capabilities.

 
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