The American bank JPMorgan helped Syria issue its first letter of credit in more than a decade, which allowed the country to complete a trade deal for the supply of fuels from the Saudi oil company Saudi Aramco. The transaction is an important step towards restoring Syria's access to the international banking system after years of financial isolation, Reuters reports.
The Central Bank of Syria announced on October 11 that it had issued its first letter of credit in 14 years through a major U.S. financial institution to support a deal with Aramco, but did not name the bank at the time.
Mohammad Kawya, executive director of financial affairs at the Syrian Petroleum Company (SPC), said that JPMorgan had confirmed the letter of credit and guaranteed its performance.
Syria has already received 65,000 tons of diesel fuel under the agreement. The country hopes to expand future supplies to include gasoline and, at a later stage, light crude oil.
„Given the current circumstances in the region – "such as the sharp increase in global fuel prices and the difficulties in securing supplies and routes for petroleum products and crude oil - this agreement primarily ensures fuel supplies for the domestic Syrian market," said Kawya.
He said the letter of credit also gives Syria greater flexibility in managing payment obligations. JPMorgan declined to comment to Reuters.
The deal has significance that goes beyond the specific delivery of fuel. A letter of credit is a widely used instrument in international trade, in which a bank guarantees payment to the seller upon fulfillment of agreed terms. For Syria, the ability to use such a mechanism again makes it easier to conclude international deals after a prolonged period of restrictions.
The new Syrian leadership is seeking to restore the country's political, financial and trade ties after the removal of Bashar al-Assad nearly two years ago. The US lifted broad sanctions on Syria last year, and in August 2026 the country was also removed from the US list of state sponsors of terrorism.
Restoring international payments is particularly important for the Syrian economy, as it could facilitate not only the import of energy products, but also the country's broader return to international trade and financial markets.