First Letter of Credit in 14 Years
The Central Bank of Syria has issued the country's first letter of credit in 14 years, arranged through a major United States financial institution. In a statement on 11 October 2026, the bank said the instrument supported a commercial fuel purchase, signaling a cautious return to the international banking channels Syria lost during years of isolation.
A senior energy official identified the institution as JP Morgan, which confirmed the letter of credit and guaranteed its execution. The bank declined to comment on its role.
Fuel From Saudi Aramco
The credit line underpinned a purchase of fuel products from Saudi Aramco carried out during October 2026, settled in US dollars (USD). The arrangement cleared the way for the transaction once payment was secured, the executive director for financial affairs at the Syrian Petroleum Company, Muhammad Qawja, said.
Under the deal, the Syrian Petroleum Company has already received 65,000 tonnes of diesel. Qawja said a letter of credit offers greater flexibility in managing payment obligations at a time of high fuel prices and strained supply lines.
Easing Sanctions, Reopening Doors
The transaction follows a broad shift in Syria's external relations. The United States lifted its comprehensive sanctions on the country in 2025 and removed Syria from its list of state sponsors of terrorism in August 2026, steps that reopened access to dollar clearing and correspondent banking.
For more than a decade, those restrictions pushed Syrian trade into cash, barter and informal channels, raising costs and limiting the central bank's ability to manage foreign payments.
Next Shipments Planned
The Syrian Petroleum Company said it hopes to widen future shipments under the framework to include gasoline, and eventually light crude oil. Officials framed the fuel agreement as both a supply measure and a test of Syria's ability to process international payments through regulated banks.