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Background:
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- The conflict is over Nagorno-Karabakh, a mountainous area that is part of Azerbaijan but was mostly populated by ethnic Armenians.
- Fighting started in the late 1980s. Both countries became independent after the Soviet Union broke up in 1991.
- In 2023, Azerbaijan took back full control of Nagorno-Karabakh, leading almost all of its 100,000 Armenian residents to move to Armenia.
- Both countries will reopen transport routes and boost trade.
- A new transit corridor, called the Trump Route for International Peace and Prosperity, will connect Azerbaijan to its Nakhchivan exclave through Armenia.
- This corridor will give Azerbaijan a direct route to Turkey and then to Europe, helping its oil and gas exports.
- The US sees this as a chance to increase its role in the region while Russia’s influence is declining.
- Could bring lasting peace between Armenia and Azerbaijan.
- Improves regional connectivity in the South Caucasus.
- May change the balance of power in the region, with greater US involvement.
- On August 9, 2025, Armenia and Azerbaijan signed a peace deal at the White House, brokered by the US, to end decades of conflict and improve relations.
