Armenia and Azerbaijan Sign Landmark Peace Agreement with U.S. Mediation

On August 8, 2025, Armenian Prime Minister Nikol Pashinyan and Azerbaijani President Ilham Aliyev, with U.S. President Donald Trump mediating, initialed a peace agreement at the White House to end the decades-long Nagorno-Karabakh conflict. A central feature of the accord is the establishment of the "Trump Route for International Peace and Prosperity" (TRIPP), a 43-kilometer transit corridor through southern Armenia connecting mainland Azerbaijan to its Nakhchivan exclave. The United States has secured exclusive development rights over this corridor for 99 years, planning to develop infrastructure such as rail, road, oil and gas pipelines, and fiber-optic lines.

The Nagorno-Karabakh conflict has been a protracted territorial and ethnic dispute between Armenia and Azerbaijan since the late 1980s, following the dissolution of the Soviet Union. The region, predominantly inhabited by ethnic Armenians, declared independence from Azerbaijan, leading to a series of wars and skirmishes over the decades. Despite various ceasefires and mediation efforts, a lasting resolution had remained elusive until this recent agreement.

The development of TRIPP is expected to unlock up to $45 billion in infrastructure and energy opportunities, diversifying Azerbaijan’s export routes and offering Armenia new channels for trade and investment. The peace deal signifies a strategic shift in regional power dynamics, reducing Russian influence and increasing U.S. presence in the South Caucasus. Iran has expressed concerns over the corridor, citing potential negative consequences of foreign intervention near its borders.

Prime Minister Nikol Pashinyan stated that TRIPP will "open strategic economic opportunities that will bring long-term benefits, promote infrastructure investments, stimulate regional connectivity and strengthen the US leadership as a key actor in conflict resolution." President Ilham Aliyev expressed optimism, stating that the agreement "will result in peace—long-lasting peace, eternal peace in the Caucasus." President Donald Trump highlighted the economic benefits, noting that the agreement will "economically benefit all three of our nations."

Ali Akbar Velayati, a top adviser to Iran's Supreme Leader, criticized the project, claiming that its intent is to "sever Iran's link with the Caucasus and impose a land blockade on Iran and Russia." The Russian Foreign Ministry criticized the project, stating that it is part of the West's continuing efforts to sideline Russia and Iran.

Prior to this agreement, multiple attempts had been made to resolve the Nagorno-Karabakh conflict, including mediation by the OSCE Minsk Group, co-chaired by Russia, France, and the United States. However, these efforts had not resulted in a lasting peace. The current agreement marks a significant departure by involving direct U.S. mediation and securing long-term development rights over a strategic corridor.

The Armenia-Azerbaijan peace agreement, facilitated by U.S. mediation, represents a pivotal moment in the South Caucasus, with far-reaching economic and geopolitical implications. The establishment of the TRIPP corridor offers a tangible pathway toward regional integration and prosperity, while also signaling a shift in the balance of power in the region. The success of this agreement will depend on the commitment of all parties to uphold their obligations and the effective implementation of the proposed infrastructure projects.