Iran, Israel race to court Azerbaijan as rivalry in Caucasus heats up

The Iranian president’s visit to Azerbaijan, soon to be followed by the Israeli prime minister's trip, highlights Baku’s sophisticated geopolitical maneuvering as Tehran and Tel Aviv vie for influence in the strategically vital South Caucasus.

It is a region where energy corridors, security alignments, and infrastructure ambitions increasingly converge.

President Masoud Pezeshkian’s trip—the first by an Iranian president since 2022—marks a cautious effort to mend a strained relationship.

Restoring Iran-Azerbaijan ties

Central to the distrust is Tehran’s long-standing fear that Azerbaijan could serve as a launchpad for Israeli operations against Iran, given Baku’s deepening military cooperation with Tel Aviv.

Relations further deteriorated after the 2023 attack on Azerbaijan’s embassy in Tehran, prompting a mutual expulsion of diplomats.

Equally important is Baku's accusation that Iran's Revolutionary Guards (IRGC) seeks to destabilize Azerbaijan through groups like the Huseyniyyun. Azerbaijani authorities assert that these groups have been involved in plotting attacks, fomenting unrest, and targeting foreign officials.

Another flashpoint is the Turkish-backed Zangezur Corridor, a proposed route connecting mainland Azerbaijan to Nakhchivan via Armenia.

Iran opposes the project, viewing it as a threat to its regional influence and access to Armenia. However, signs of de-escalation include joint Iranian-Azerbaijani naval drills in the Caspian Sea in late 2024 and progress on the North-South Transport Corridor with Russia.

While the Zangezur dispute remains unresolved, Pezeshkian’s visit focuses on practical cooperation, particularly in energy, rather than contentious territorial issues.

Israel's strategic countermove

Israeli Prime Minister Benjamin Netanyahu’s upcoming visit reflects Israel’s intention to bolster Azerbaijan’s role as a regional partner amid escalating tensions with Iran. The timing of this trip appears as a direct counter to Tehran's outreach.

Israel seeks to deepen its footprint near Iran’s borders, using Azerbaijan’s strategic geography as both a listening post and an energy partner.

Key goals of Netanyahu's visit include strengthening intelligence-sharing on Iran’s nuclear program, encouraging Baku to formalize its long-covert security ties with Israel, and leveraging Azerbaijani diplomacy to ease Turkish-Israeli frictions.

Expanding the Abraham Accords network to include Azerbaijan remains an aspirational longer-term objective.

Competing regional visions

These high-profile visits reflect a broader contest for influence across the South Caucasus.

Turkey and Israel favor the Zangezur Corridor as a means to enhance connectivity and weaken Iranian leverage, while Iran views the project as a direct challenge to its regional role.

Israel has consistently backed Azerbaijan’s position in the Nagorno-Karabakh conflict, while Iran—historically closer to Armenia—has taken a more pragmatic approach toward Baku.

In Syria, Israel and Turkey seek to curb Iranian entrenchment, whereas Iran remains firmly behind the Assad regime. Armenia’s gradual alignment with the West further deepens Tehran’s strategic anxiety.

For Israel, Azerbaijan offers a critical hub for intelligence gathering and diversification of energy supplies, anchoring its evolving South Caucasus strategy.

Enduring tensions, strategic risks

Despite gestures toward normalization, structural tensions between Iran and Azerbaijan remain deep.

The $9.3 billion in arms deals signed by Baku and Tel Aviv between 2020 and 2024 remains a major obstacle to trust. Iran has repeatedly threatened military action if the Zangezur Corridor advances without its involvement, underscoring how infrastructure projects have become proxies for larger geopolitical rivalries.

Meanwhile, regional flashpoints—such as Israel’s military operations in Gaza and Iran’s nuclear escalation—could further complicate Azerbaijan’s delicate balancing act.

As external pressures mount, Baku’s strategy of engaging both Tehran and Tel Aviv becomes increasingly fraught with risk.

Pezeshkian’s visit signals Iran’s pragmatic attempt to recalibrate its relationship with Azerbaijan after years of estrangement. It is less a breakthrough than a tactical reassessment in response to shifting regional dynamics.

Netanyahu’s impending trip adds another layer to the strategic competition, reinforcing Azerbaijan’s emergence as a pivotal mediator between rival powers.

Ultimately, the interaction between these two visits will shape not only the future of Iran-Azerbaijan ties but also the broader geopolitical realignment underway in the South Caucasus.