During the Syrian conflict, illicit networks and shadow economies gained prominence across the Levant, driven by war, sanctions, financial collapse, and the rise of cash-based systems. The Syrian regime played a central role in expanding drug production, particularly Captagon, and collaborating with various intermediaries, including former rivals, in distributing the drug. Although the regime’s downfall last year raised hopes of containing the Captagon trade, smuggling networks have adapted, establishing mobile labs and extending their operations as far as mainland Europe. These illicit activities pose significant regional and international challenges, fueling organized crime, militant financing, and public health crises. They have also laid bare longstanding state weaknesses and socioeconomic vulnerabilities. As drug demand persists and governance fails, these networks continue to evolve, embedding themselves deeper into local and transnational systems.