Trump’s Peace Deal: A New Chapter for Armenia, Azerbaijan and the South Caucasus

A Breakthrough in the South Caucasus: 

In a rare diplomatic breakthrough, Armenia and Azerbaijan — two long-time adversaries in the South Caucasus — have agreed on a historic peace deal brokered by U.S. President Donald Trump on August 8th 2025. While the agreement marks a turning point in decades of hostility, it also signals Washington’s renewed appetite for shaping the region’s political and economic future.

The deal, forged through talks between Armenian Prime Minister Nikol Pashinyan and Azerbaijani President Ilham Aliyev, lays out a roadmap aiming at increasing mutually beneficial cooperation between the two South Caucasus nations.

Global Leaders Applaud Armenia–Azerbaijan Peace Agreement

According to the spokesperson of the White House Anna Kelly this agreement aims to “unlock the great  potential of the South Caucasus region in sectors of trade, transit and energy”(Schwartz and Bazail-Eimil, 2025). 

The Armenian PM Pashniyan called the deal a new chapter of peace for both nations and the south caucasus region. On the other hand, the Azerbaijani President speaking to the journalists at the White House said: “Today we are writing a great new history” (Al-Jazeera, 2025). 

The European Council also welcomed the normalisation process, commending the efforts carried out by the United States and urging the swift signing and ratification of the final treaty to ensure lasting stability. This international endorsement emphasizes the deal’s potential to reshape regional dynamics and foster cooperation beyond borders (European Council of the European Union, 2025).

South Caucasus Transit Corridor: The Core of Armenia-Azerbaijan Agreement: 

While the official terms of the deal remain undisclosed, its centerpiece is the creation of the trade and transit corridor across the South Caucasus region. The agreement between the two states is significant in a sense that it will lead to the establishment of a transportation corridor which has been tangled in a territorial dispute since the disintegration of the Soviet Union more than thirty years ago. This transit corridor will link Azerbaijan to its sovereign Nakchivan exclave, separated by a narrow strip of Armenian territory (Schwartz and Bazail-Eimil, 2025).

Under the US-brokered deal, Washington gains special development rights to the transit corridor. Thus, the US will expedite greater energy and resource exports throughout the south Caucasus (Schwartz and Bazail-Eimil, 2025). Supporters have dubbed it the (Trump Route for International Peace and Prosperity), highlighting its potential to reshape regional trade flows, strengthen economic ties, and cement the U.S. role as a strategic partner in the post-conflict era.

Legacy Politics and Nobel Nomination: 

In a symbolic flourish, both the Azerbaijani and Armenian leaders publicly praised President Trump for brokering the deal, announcing their intention to nominate him for the Nobel Peace Prize. While largely ceremonial, the move highlights how the White House is framing this agreement as a signature achievement in U.S. foreign policy.

Conclusion: 

The current peace deal, centered at the heart of the transit corridor and brokered by the United States should be seen as little more than a diplomatic handshake. This agreement has the potential to reshape the political and  economic architecture of the South Caucasus region. Moreover, with cautious optimism we’ll be able to see whether this Trump route to peace can truly pave the way for long-lasting international peace and security or not.

Bibliography: 

• Armenia/azerbaijan: Statement by the High Representative on behalf of the European Union on the initialling of the Armenia-Azerbaijan peace treaty – consilium (2025) European Council of the European Union. Available at: https://www.consilium.europa.eu/en/press/press-releases/2025/08/08/armeniaazerbaijan-statement-by-the-high-representative-on-behalf-of-the-european-union-on-the-initialling-of-the-armenia-azerbaijan-peace-treaty/
• Azerbaijan, Armenia sign US-brokered peace accord at the White House (2025) Al Jazeera. Available at: https://www.aljazeera.com/news/2025/8/8/azerbaijan-and-armenia-sign-accord-overseen-by-trump-at-the-white-house
  
• Huseynov, V. (2025) Armenia-Azerbaijan peace process gains momentum with Abu Dhabi Summit, Jamestown. Available at: https://jamestown.org/program/armenia-azerbaijan-peace-process-gains-momentum-with-abu-dhabi-summit/ 

• Schwartz, F. and Bazail-Eimil, E. (2025). US brokers a deal between long-hostile Armenia and Azerbaijan. [online] POLITICO. Available at: https://www.politico.com/news/2025/08/07/us-deal-armenia-azerbaijan-00499285