US lifts sanctions on Eritrea, easing counterparty risk and trade finance barriers
On 19 September 2026 the US government announced it had lifted the unilateral sanctions imposed on Eritrea in 2021, stating the related national emergency had "expired". The action removes a key US sanction designation and should reduce the sanction premium attached to Eritrean sovereign and counterparty exposures.
The desk brief
On 19 September 2026 the US government announced it had lifted the unilateral sanctions imposed on Eritrea in 2021, stating the related national emergency had "expired". The action removes a key US sanction designation and should reduce the sanction premium attached to Eritrean sovereign and counterparty exposures.
Removing US sanctions should, in principle, narrow Eritrea sovereign and counterparty risk premia and lower barriers to correspondent banking and trade finance. Any material credit or insurance repricing along Red Sea corridor exposures will depend on how global banks, insurers and OFAC/US Treasury guidance respond and on the re-listing of Eritrean entities in commercial risk systems.
US Treasury/OFAC to publish formal removal guidance and updated SDN/non-SDN lists; banks' correspondence and insurers' policy changes to follow.
Sources & verification
Developing storyFurther independent confirmation is required.
- US lifts sanctions on Eritrea ‘to advance US regional interests’ in Red SeaafpSource published (opens in a new tab)
- United States lifts unilateral sanctions on Eritreashabait.com (opens in a new tab)
Public references supporting this brief.