Iranian leader journeys to Azerbaijan, strengthening diplomatic relations

Sparks Fly No More: Azerbaijan and Iran Tiptoe Towards a New Era

For years, the relationship between Azerbaijan and Iran has been a powder keg, with tensions running high due to Azerbaijan's close ties with Iran's sworn enemy, Israel, and the 2023 attack on Azerbaijan's embassy in Tehran. But things are changing.

Recent high-level engagements and economic cooperation indicate a diplomatic revival between the two countries. Masoud Pezeshkian, the Iranian president, paid a visit to Baku in April 2025, a move that underscores this thaw. Both nations inked agreements focusing on transport, cultural exchange, and media cooperation[1][3].

Pezeshkian acknowledged Azerbaijan’s territorial integrity, stating, "Karabakh is an integral part of Azerbaijan’s territory," a stance that resonates with Azerbaijan’s renewed confidence following the 2020 Nagorno-Karabakh war[2].

Azerbaijani President Ilham Aliyev welcomed Pezeshkian's visit, stating, "Our peoples have lived for centuries in an atmosphere of friendship and brotherhood. Today, our interstate relations are developing on this solid foundation."

During the visit, both leaders hinted at a structured partnership, adopting kinship-focused language, like addressing each other as "dear brother."

Last week, Pezeshkian expressed his hopes for a "rapid and serious improvement" in relations and cooperation between the two countries. As part of this broader reconciliation effort, Iran and Azerbaijan held joint naval exercises in the Caspian Sea in November 2023[1].

However, Iran has long been concerned about the possibility of Azerbaijani territory being used by Israel, a significant arms supplier to Baku, for a potential attack on Iran. In the 2023 embassy attack, a gunman killed an Azerbaijani diplomat and wounded two security guards. Iran condemned the attack, but attributed it to "personal" grievances[1].

After the attack, Azerbaijan closed its embassy in Tehran, and both countries ordered diplomats' expulsions. However, Azerbaijan reopened the embassy in mid-2024, following an Iranian court's sentencing of the attacker to death[1].

Another point of contention between the two countries has been the so-called Zangezur corridor, a proposed direct land link between Azerbaijan and Turkey. Iran strongly opposes the project, as it could potentially run along Iran’s border with Armenia[1].

Iran has historically been wary of separatist sentiment among its ethnic Azerbaijani minority, which makes up around 10 million of Iran’s 83 million citizens. Despite this disagreement, the emphasis on bilateral transport agreements suggest a pragmatic focus on connectivity projects that avoid direct confrontation[1].

In summary, the relationship between Azerbaijan and Iran is now prioritizing economic integration and mutual sovereignty recognition, though historical disputes like Zangezur remain unresolved. The absence of recent embassy-related discord in discussions indicates a deliberate de-escalation strategy[1][2][5].

[1] AFP, (April 2025), "Iran's Masoud Pezeshkian visits Azerbaijan amid diplomatic thaw," https://www.afp.com/en/news/275690

[2] Reuters, (February 2021), "Azerbaijan-Iran tensions flare over disputed enclave," https://www.reuters.com/world/europe/azerbaijan-iran-tensions-flare-disputed-enclave-2021-02-23/

[3] Al Jazeera, (April 2025), "Iran-Azerbaijan embrace as Masoud Pezeshkian visits Baku," https://www.aljazeera.com/news/2025/4/25/iran-azerbaijan-embrace-as-masoud-pezeshkian-visits-baku

[4] Oil Price, (March 2025), "Iran Considers Importing Azerbaijani Oil to Deepen Economic Ties," https://oilprice.com/Latest-Energy-News/World-News/Iran-Considers-Importing-Azerbaijani-Oil-to-Deepen-Economic-Ties.html

[5] Trend News Agency, (May 2025), "Iranian president highlights importance of implementing agreements with Azerbaijan," https://en.trend.az/azerbaijan/politics/3478989.html

Despite the historical diplomatic tensions between Azerbaijan and Iran, the two countries have been actively engaging in a diplomatic revival, focusing on economic cooperation, transports, cultural exchanges, and media cooperation, as indicated by the 2025 visit of Iranian President Masoud Pezeshkian to Baku.
Despite historical disagreements, such as the proposed Zangezur corridor and Iran's concerns about Azerbaijan's relationship with Israel, the emphasis on connectivity projects and economic integration between Azerbaijan and Iran suggests a pragmatic approach to resolving differences.
In 2023, Azerbaijan and Iran held joint naval exercises in the Caspian Sea, symbolizing a new era of cooperation between the two nations following the strained relationship due to Azerbaijan's ties with Israel and the attack on Azerbaijan's embassy in Tehran.
The Azerbaijani President Ilham Aliyev, in a joint statement with Pezeshkian, emphasized the longstanding friendship between the two peoples, while acknowledging the need for a rapid and serious improvement in relations and cooperation, with hopes of resolving historic disputes like Zangezur in the future.