On Tuesday, President Donald Trump began his Gulf tour with a surprise announcement that the United States would lift long-standing sanctions on Syria. Saudi Arabia also pledged $600 billion to invest in the U.S.

The U.S. committed to selling Saudi Arabia an arms package valued at nearly $142 billion, which the White House called the largest "defence cooperation agreement" ever made by Washington.

Lifting sanctions on Syria is a major boost for the country, which has been devastated by over a decade of civil war. Rebels led by President Ahmed al-Sharaa ousted President Bashar al-Assad last December.

Speaking at an investment forum in Riyadh, Trump said he was responding to a request from Saudi Arabia’s de facto leader, Crown Prince Mohammed bin Salman, to remove the sanctions. “Oh, what I do for the crown prince,” Trump joked, drawing laughter from the audience. He acknowledged that the sanctions had served their purpose but said it was time for Syria to move forward.

This decision marks a significant shift in U.S. policy. The U.S. had designated Syria as a state sponsor of terrorism in 1979 and imposed sanctions in 2004. Additional sanctions were added when the civil war broke out in 2011. Syrian Foreign Minister Asaad al-Shibani tweeted that this move would mark a “new start” for Syria’s reconstruction.

Trump agreed to meet briefly with Sharaa in Saudi Arabia on Wednesday, a White House official said. During his visit, Trump and Saudi Crown Prince Mohammed bin Salman signed deals in areas including energy, defence, mining and more. Trump has sought to strengthen ties with Saudi Arabia to improve regional relations with Israel and counter Iran.

The agreement includes arrangements with over a dozen U.S. defence companies for air and missile defence, air force and space, maritime security, and communications, according to a White House fact sheet.

It’s unclear if the deal involves Lockheed F-35 fighter jets, though sources say they have been discussed. The Saudi prince stated that the overall package could potentially reach $1 trillion when additional agreements are made in the coming months.

Saudi Arabia is one of the largest buyers of U.S. arms, and the two countries have maintained close ties for decades based on oil shipments and security cooperation. However, relations became strained after the 2018 killing of U.S.-based Saudi journalist Jamal Khashoggi by Saudi agents in Istanbul, which sparked international outrage. U.S. intelligence concluded that bin Salman approved the operation to capture or kill Khashoggi, but the Saudi government has denied involvement. Trump did not address the incident during his visit and praised bin Salman as an "incredible man."

Trump said, “I really believe we like each other a lot,” after meeting with bin Salman.

From Riyadh, Trump will travel to Qatar on Wednesday and the United Arab Emirates on Thursday. The visit focuses more on investment than on security matters in the Middle East.

Several U.S. business leaders attended the event, including Elon Musk of Tesla, OpenAI CEO Sam Altman, BlackRock CEO Larry Fink, and Blackstone CEO Stephen Schwarzman. Trump was photographed speaking with Saudi officials, such as Yasir al-Rumayyan, the governor of the sovereign wealth fund, Aramco CEO Amin Nasser, and investment minister Khalid al-Falih, as he toured models for Saudi Arabia’s large-scale development projects.

Crown Prince bin Salman is focusing on diversifying Saudi Arabia’s economy through the Vision 2030 reform program. This includes mega-projects like NEOM, a futuristic city the size of Belgium. However, rising costs and falling oil prices have led to scaled-back ambitions.

Trump did not include a visit to Israel during his trip, raising questions about its place in Washington's priorities as Trump presses Israeli Prime Minister Benjamin Netanyahu to agree to a new ceasefire in the Gaza conflict.

Trump expressed his “fervent hope” that Saudi Arabia would normalise relations with Israel, following the lead of other Arab states during his first term. “But you’ll do it in your own time,” he added. Sources suggest that Netanyahu’s opposition to the creation of a Palestinian state may complicate progress with the Saudis.

On Tuesday, Trump called Iran "the most destructive force" in the Middle East. He warned that the U.S. would never allow Iran to obtain a nuclear weapon and said he would be willing to make a new deal with Iran, but only if its leadership changed course. “I want to make a deal with Iran,” Trump said. “But if Iran's leadership rejects this olive branch… we will have no choice but to impose massive maximum pressure.”