Syrian President Ahmed al-Sharaa held a telephone conversation with U.S. President Donald Trump on Sunday, during which the two leaders discussed Syria’s economic recovery and recent regional developments, according to a statement from the Syrian presidency.

During the call, Sharaa emphasized that lifting the remaining U.S. sanctions on Syria is essential for reviving the country’s economy and attracting foreign investment.

Although Washington has dismantled much of its sanctions regime on Syria and repealed the Caesar Act, U.S. officials have stated that certain sanctions remain in place. These measures continue to target former Syrian president Bashar al-Assad, his associates, individuals accused of human rights violations, alleged captagon traffickers, and other actors the United States considers destabilizing to the region.

The U.S. administration is also reviewing Syria’s designation as a state sponsor of terrorism, a status that imposes restrictions on foreign assistance, defense exports, and financial transactions.

Analysts view the removal of the remaining sanctions as a critical step toward the success of Syria’s new government and broader economic recovery efforts.

Several Saudi companies are reportedly preparing multi-billion-dollar investments in Syria as part of Riyadh’s support for reconstruction and economic development. Other Gulf nations have also pledged financial assistance to help stabilize the country after years of conflict.

The phone call comes amid growing regional efforts to support Syria’s reintegration into the international community and encourage economic rebuilding.

U.S. Defence Secretary ​Pete Hegseth on Saturday urged Asian allies to ramp up military spending to counter China’s growing power and prevent its dominance in the region, warning ‌of “rightful alarm” over its rapid military buildup, Reuters reported.

Hegseth, speaking at the Shangri-La Dialogue in Singapore, Asia’s premier forum for defence leaders, militaries and diplomats, said a stronger, more self-reliant network of allies is essential to deter aggression and preserve the balance of power.

“There is rightful alarm regarding China’s historic military buildup and the expansion of its military activities in the region and beyond,” he said.

“A Pacific dominated by any hegemon would unravel the regional balance ​of power,” Hegseth said. “No state, including China, can impose its hegemony and hold the security or prosperity of our nation and our allies in question.”

The U.S. expects its ​Asian allies and partners to increase defence spending to 3.5% of GDP as it pledged a $1.5 trillion investment in its military, the Pentagon chief ⁠said.

Hegseth stressed allies want stability, not escalation.

“What they want, and what the United States delivers, is strength that is disciplined, resolve that is steady, and leadership that is confident enough to ​speak and walk softly while carrying a big stick.”

Hegseth also struck a measured tone on U.S.-China ties, saying relations are “better than they have been in many years,” with more frequent military-to-military engagement ​helping to manage tensions.

“We are meeting more frequently with our Chinese counterparts by maintaining open lines of military-to-military communication.”

Zhou Bo, a senior fellow at Tsinghua University and retired People’s Liberation Army senior colonel who was part of the Chinese delegation, described U.S.-China relations as “complicated.”

Nonetheless, he said Hegseth struck “a much better tone” this year than last, attributing the shift to Trump’s visit to China.

“Both sides have open channels of communication, the situation is ​not as exaggerated as the outside world makes it out to be,” Zhou said.

China, whose defence minister is skipping the dialogue for a second consecutive year, accused Hegseth last year of making “vilifying” ​remarks.

Hegseth echoed President Donald Trump’s long-standing demand that allies shoulder more of their own defence costs. Trump has pointedly said European and NATO partners should reduce reliance on Washington.

“The era of the United States ‌subsidizing the ⁠defence of wealthy nations is over,” Hegseth said. “We need partners, not protectorates,” he added. “We don’t have a strong alliance unless everyone has skin in the game. No freeloading.”

Hegseth praised contributions from allies including South Korea, the Philippines, Australia, Singapore, Malaysia and Thailand, and said Japan was taking concrete steps to bolster its defences.

Tokyo and Washington “must each pull our weight to strengthen the U.S.-Japan alliance,” he said.

On the Middle East conflict, Hegseth said the United States stands ready to resume strikes on Iran if diplomacy fails, as negotiators from Washington and Tehran work ​to bridge major differences blocking a deal.

“Our ability ​to recommence if necessary…we are more than ⁠capable,” Hegseth said. He added that Trump remains “patient” and is seeking a “strong deal” to ensure Iran does not obtain a nuclear weapon.

Trump said on Friday he would convene advisers in a secure White House setting to make a “final determination” on a proposal to end the Iran war.

Hegseth also ​pushed back on concerns the conflict would distract from Asia-Pacific priorities.

“We can do two things at one time.”

Asked about arms ⁠sales to Taiwan, Hegseth downplayed concerns that a multi-billion-dollar package could be affected as the United States draws down its weapons stockpiles amid the Middle East conflict. “We feel very good about our stockpiles and how we use them,” he said.

Taiwan, which China views as its own territory, has been waiting for the U.S. to approve an arms sale that Reuters reported could be worth up to $14 billion.

Trump ⁠sowed uncertainty in ​Taipei by saying, after meeting China’s President Xi Jinping this month, that he was undecided on whether to approve ​the package.

Any decision on future arms sales would rest with President Trump, Hegseth said, signalling no shift in Washington’s longstanding approach despite recent engagement with Beijing, read the report.

“Those decisions will depend on the president and the nature of that relationship,” Hegseth ​said. “There’s been no change in our status.”

The United States and Iran have reached a preliminary agreement to extend their ceasefire for another 60 days and ease restrictions on shipping through the Strait of Hormuz, according to sources cited by Reuters.

The proposed deal, which still requires approval from U.S. President Donald Trump and Iranian leadership, would mark the most significant step toward de-escalation since the conflict began on February 28.

Sources familiar with the negotiations said the agreement would allow unrestricted maritime traffic through the strategic waterway while talks continue on key issues, including Iran’s nuclear program, sanctions relief, and regional security concerns.

Iranian state media reported that the text of the agreement has not yet been finalized, while U.S. Vice President JD Vance said Washington was “very close” to securing a deal but cautioned that no guarantees could yet be made.

The reports came amid renewed military tensions, including U.S. strikes on Iranian drones near Bandar Abbas and Iran’s retaliatory threats against American forces in the region. Kuwait also reported intercepting a ballistic missile fired toward its territory.

The Strait of Hormuz, a vital route for global oil and gas supplies, remains central to the negotiations. News of the possible agreement contributed to a decline in oil prices amid hopes of reduced regional tensions.

Meanwhile, indirect diplomatic efforts continue, with Pakistan expected to hold talks with senior U.S. officials in Washington aimed at supporting mediation efforts.