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The leaders of Armenia and Azerbaijan signed a peace agreement at the White House on August 8, 2025, marking the end of decades of conflict between the two South Caucasus nations.

The deal, brokered by U.S. President Donald Trump, aims to reopen transport links, establish diplomatic relations, and enhance Washington’s influence in a region long dominated by Russia.

Armenian Prime Minister Nikol Pashinyan and Azerbaijani President Ilham Aliyev shook hands in front of Trump, who called the event “historic” and “a long time coming.” The U.S. president said the two countries had committed to stop all fighting “forever” and to open travel, business, and diplomatic ties.

“It’s been a long time coming,” Trump told reporters. “Thirty-five years they fought, and now they’re friends, and they’re going to be friends for a long time.”

Decades of conflict over Nagorno-Karabakh

Tensions between Armenia and Azerbaijan date back to the late 1980s, when Nagorno-Karabakh, a mountainous region inside Azerbaijan but populated mostly by ethnic Armenians, broke away with support from Armenia. The dispute escalated into a war that lasted until a ceasefire in 1994, leaving Nagorno-Karabakh and surrounding territories under Armenian control.

The fragile truce repeatedly broke down over the years. In 2020, Azerbaijan launched a military offensive that recaptured large parts of the territory. In 2023, Azerbaijani forces regained full control of Nagorno-Karabakh, prompting almost all the region’s remaining 100,000 ethnic Armenians to flee to Armenia.

Previous peace talks were mediated primarily by Russia, which positioned itself as the main broker in the South Caucasus. However, negotiations frequently stalled, particularly over demands from Azerbaijan for a transport corridor to its Nakhchivan exclave, separated from the rest of the country by a strip of Armenian territory.

“As President, my highest aspiration is to bring peace and stability to the world.” – President Donald J. Trump 🇺🇸 pic.twitter.com/mDSJ2GRsHl

— The White House (@WhiteHouse) August 9, 2025

Details of the new agreement

The agreement includes commitments to end hostilities, respect territorial integrity, and normalize relations. Both countries will open borders for travel and trade, establish diplomatic missions, and work toward long-term economic cooperation.

At the center of the deal is the creation of a trade and transit corridor through Armenian territory, connecting mainland Azerbaijan to Nakhchivan. The route will be named the Trump Route for International Peace and Prosperity, a decision the White House said reflects the president’s role in brokering the accord.

The corridor will be under U.S. development rights, with Washington expected to invest in infrastructure to facilitate the transport of goods, energy, and resources. According to the White House, the project is intended to boost regional trade and attract foreign investment while increasing U.S. strategic presence in the area.

Aliyev described the agreement as a turning point for the Caucasus. “We lost a lot of years being preoccupied with wars and occupation and bloodshed,” he said. “President Trump, in six months, did a miracle.”

Pashinyan called the signing a “significant milestone” and a “success for our countries and for our region.” He said the agreement represented “opening a chapter of peace” and acknowledged the political challenges involved in reaching it.

A shift in regional power dynamics

The deal marks a significant geopolitical shift. For over a century, Russia has been the dominant external power in the South Caucasus, maintaining military bases and exerting influence through energy, trade, and diplomacy. Moscow mediated previous agreements between Armenia and Azerbaijan, including one signed by Aliyev and Pashinyan under the supervision of Russian President Vladimir Putin.

In recent years, however, Russia’s influence in the region has weakened, partly due to its ongoing war in Ukraine and economic challenges at home. The U.S.-led agreement sidelines Moscow and signals Washington’s intent to play a larger role in the Caucasus.

“With Trump now bringing the two countries together, Putin is largely sidelined,” a White House official said. “The U.S. is demonstrating that it can broker lasting peace in regions where Russian diplomacy has failed.”

Trump underscored the strategic importance of the agreement, noting that it would expand U.S. energy and technology trade with both nations. He also announced that restrictions on U.S. military cooperation with Azerbaijan would be lifted, a move likely to raise concerns in some quarters.

The corridor dispute resolved

The issue of the corridor to Nakhchivan had long been a sticking point in peace talks. Azerbaijan insisted on an unimpeded transport link, while Armenia demanded sovereignty over the route. The dispute had previously derailed negotiations, with Aliyev threatening to take the corridor by force if necessary.

The new deal reportedly resolves the matter by allowing U.S. oversight and development, ensuring that the route remains open to both Azerbaijani and Armenian use while providing economic benefits to both sides. Officials said the arrangement aims to make the corridor a shared asset rather than a contested line of division.

The leaders also agreed to request the formal dissolution of the Minsk Group, a mediation body under the Organization for Security and Cooperation in Europe (OSCE) that has been largely inactive in recent years.

Trump’s efforts for the Nobel Prize

The summit fits into Trump’s broader strategy of pursuing high-profile diplomatic breakthroughs. During his second term, he has mediated agreements between several warring states and has been nominated for the Nobel Peace Prize by leaders from Israel and Cambodia.

On Thursday, Cambodian Prime Minister Hun Manet announced his nomination of Trump for helping to de-escalate a border conflict between Cambodia and Thailand. In early July, Israeli Prime Minister Benjamin Netanyahu also nominated him for the prize.

Both Aliyev and Pashinyan said they would jointly nominate Trump for the award, citing his role in ending one of the longest-running conflicts in the post-Soviet space. “We are today establishing peace in the Caucasus,” Aliyev said. “It’s a great new history for our people.”

Economic and strategic implications

The transit corridor is expected to reshape trade patterns in the region by providing Azerbaijan with direct access to its exclave and potentially linking to Turkish and European markets. For Armenia, the project could bring investment and greater economic integration after years of isolation.

The U.S. is expected to use its development rights to facilitate energy exports from the Caspian Sea through the corridor, potentially reducing Europe’s reliance on Russian supplies. Analysts say the move strengthens Washington’s position in the broader competition for influence in Eurasia.

Trump framed the deal as part of a larger vision for stability and prosperity in the South Caucasus. “We are creating opportunities, jobs, and peace,” he said. “The United States will stand with Armenia and Azerbaijan as they move forward together.”

Challenges ahead

While the agreement has been welcomed by both governments, observers note that its success will depend on sustained political will and careful management of lingering tensions. Issues such as the return of displaced persons, security along the corridor, and mutual recognition of borders will require ongoing negotiation.

The White House said an implementation committee with representatives from Armenia, Azerbaijan, and the US will oversee the process. The committee’s first meeting is expected within a month, with construction on the corridor set to begin later this year.

In a symbolic move, Trump announced he would personally attend the groundbreaking ceremony. He also revealed plans to host Aliyev and Pashinyan again in Washington next year to review progress.

Russia’s response

The Kremlin has not yet issued an official statement on the deal. However, Russian officials have previously warned against what they call “external interference” in the South Caucasus. Analysts expect Moscow to respond cautiously, balancing its traditional ties to Armenia with its growing energy cooperation with Azerbaijan.

Shortly after the signing ceremony, Trump announced that he would meet Putin for talks in Alaska next week. The agenda has not been disclosed, but regional analysts believe the new Armenia-Azerbaijan agreement will be discussed.

For now, both Aliyev and Pashinyan are presenting the deal as the start of a new era. “This is a peace for generations,” Pashinyan said. “We will make sure it lasts.”