WASHINGTON, Aug 9 – In a landmark diplomatic achievement, U.S. President Donald Trump announced that Azerbaijan and Armenia have signed a historic peace agreement, ending decades of hostility and opening the door to deeper economic and political cooperation. The deal, finalized at the White House on Friday, marks the first successful resolution of a long-standing regional conflict near Russia’s borders since the Cold War era.
The agreement brings an official end to hostilities between the two South Caucasus neighbors, granting the United States exclusive development rights to a strategically important transit corridor through the region. This corridor, which will connect vital energy routes and trade lines, is expected to significantly enhance regional exports of oil, gas, and other resources. Additionally, the deal lifts longstanding restrictions on defense cooperation between Azerbaijan and the United States, a move likely to shift the geopolitical balance in the area.
President Trump, joined by Azerbaijani President Ilham Aliyev and Armenian Prime Minister Nikol Pashinyan at the signing ceremony, hailed the accord as “a breakthrough for peace and friendship.” Standing between the two leaders, Trump declared, “For 35 years, these nations fought. Now they are friends, and they will remain friends for a very long time.”
Ending a Decades-Long Standoff
The deep-rooted tensions between Armenia and Azerbaijan date back to the late 1980s, when Nagorno-Karabakh, a mountainous region within Azerbaijan but primarily inhabited by ethnic Armenians, broke away with Armenia’s support. This dispute led to multiple wars and periods of fragile ceasefires. In 2023, Azerbaijan reestablished complete authority over the area, leading the majority of its ethnic Armenian residents to move to Armenia.
Friday’s agreement commits both sides to respecting each other’s territorial integrity, resuming diplomatic ties, and fostering economic cooperation. The United States has also reached separate agreements with each country, covering areas such as energy development, trade expansion, and technological collaboration, including advancements in artificial intelligence. While specific details of these bilateral deals remain undisclosed, U.S. officials confirmed that the defense partnership clause would now be implemented without prior restrictions.
The newly designated transit route, informally referred to by U.S. officials as the “Trump Route for International Peace and Prosperity,” has already drawn interest from several companies, including multiple American firms. This corridor is envisioned not only as an economic lifeline but also as a symbol of lasting peace in a historically unstable region.
Trump emphasized the broader significance of the deal, noting that it could inspire other nations in conflict to pursue peaceful resolutions. “We are not only ending a war here, we are setting an example for the world,” he stated. Both Aliyev and Pashinyan conveyed their appreciation to the U.S. president, with each leader signaling their intention to nominate him for the Nobel Peace Prize.
Regional and Global Reactions
The South Caucasus holds a strategic position at the crossroads of Europe, Russia, Turkey, and Iran, and it is an important hub for energy transportation. As such, the peace agreement has drawn international attention. Iran issued a statement welcoming the development as a “positive step toward lasting peace in the region,” while cautioning against any foreign activities that could threaten security along its borders. Tehran also offered to work with both nations through regional frameworks and direct diplomatic channels.
U.S. policy experts view the deal as more than a regional peace settlement. Brett Erickson, a sanctions and international policy adviser, explained that the agreement could help close loopholes that have allowed certain nations to circumvent economic sanctions. “For years, this area has been a blind spot in enforcement efforts. By stabilizing the region, the U.S. and its allies can strengthen their ability to oversee and secure trade routes,” he said.
Analysts also believe the peace deal may unsettle Moscow, which has historically considered the South Caucasus to be within its sphere of influence. With the United States now securing exclusive rights to a major transit route and engaging in defense cooperation with Azerbaijan, Russia’s role in the region could diminish.
Still, experts caution that the agreement’s long-term success will depend heavily on sustained U.S. involvement. Regional affairs specialist Olesya Vartanyan noted, “The handshake today is significant, but these countries have a longer history of failed negotiations than successful peace-building. Without ongoing diplomatic engagement, there’s a real risk that tensions could re-emerge.”
Senior U.S. officials described the deal as the first successful resolution of a so-called “frozen conflict” on Russia’s periphery in decades, signaling a potential shift in regional power dynamics. According to these officials, Armenia has granted the U.S. long-term special development rights for the transit corridor, a move expected to bring substantial economic benefits to both nations.
Human rights advocates have also weighed in, urging the U.S. administration to use this new partnership to encourage political reforms. Daphne Panayotatos, from the advocacy group Freedom Now, called for the release of political prisoners in Azerbaijan as part of the broader peace-building process. While Baku has dismissed such demands as interference, Washington insiders say the issue will remain part of ongoing discussions.
The agreement adds to a growing list of diplomatic efforts credited to Trump in his second term, including facilitating peace between Cambodia and Thailand, brokering peace between Pakistan and India, and facilitating talks to ease tensions between Rwanda and the Democratic Republic of the Congo. However, major conflicts, such as the war in Ukraine and the ongoing crisis in Gaza, remain unresolved. Trump has scheduled a meeting with Russian President Vladimir Putin in Alaska on August 15 to discuss potential steps toward ending the conflict in Ukraine.