Investing.com -- Qatar is postponing providing funds to Syria's new leaders to boost public sector salaries due to concerns over potential breaches of U.S. sanctions, according to a Reuters report on Wednesday.

Despite the previous U.S. administration's sanctions exemption issued on January 6, which permitted transactions with Syria's governing institutions for a period of six months, Qatar does not deem this sufficient to cover the payments it would need to make through the central bank to finance the salary hike, the sources informed.

Qatar, a prosperous U.S. ally with historical connections to groups that assisted in overthrowing former Syrian president Bashar al-Assad in December, is awaiting clearer understanding of U.S. President Donald Trump's policy towards Damascus.

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