Syria must “continue to work towards becoming a stable country that is at peace, and today’s actions will hopefully put the country on a path to a bright, prosperous and stable future”, treasury secretary Scott Bessent said in a statement.

The move formalised a decision announced by President Donald Trump last week.

During a Middle East tour, Trump unexpectedly announced that he was lifting “brutal and crippling” Assad-era sanctions on Syria in response to demands from Turkey and Saudi Arabia.

The sanctions relief extends to Syria’s new government with conditions that the country not provide safe haven for terrorist organizations and ensure security for religious and ethnic minorities, the treasury said.

The state department simultaneously issued a waiver enabling foreign partners and allies to participate in Syria’s reconstruction, giving companies the green light to do business in the country.

Secretary of state Marco Rubio said in a statement today the waiver would “facilitate the provision of electricity, energy, water and sanitation, and enable a more effective humanitarian response across Syria”.

The authorisation covers new investment in Syria, provision of financial services, and transactions involving Syrian petroleum products.

“Today’s actions represent the first step on delivering on the president’s vision of a new relationship between Syria and the US,” Rubio said.

The US had imposed sweeping restrictions on financial transactions with Syria during the country’s 14-year civil war and made clear it would use sanctions to punish anyone involved in reconstruction as long as Assad remained in power.

After an Islamist-led campaign last year that toppled Assad, Syria’s new government has been looking to rebuild relations with western governments and roll back punishing sanctions.