Since 1991, when both countries gained their independence following the disintegration of the Soviet Union, Armenia and Azerbaijan have been fighting over a swath of mountainous territory known as Nagorno-Karabakh. For much of that time, Russia has exploited the conflict.
Fortunately, the two nations are closer than ever to a peace deal. As Armenian Prime Minister Nikol Pashinyan said recently, “all the prerequisites to peace are in place”. In 2022, both sides agreed on common borders and last summer, Armenia retroceded four abandoned villages in internationally recognised Azerbaijani territory.
Yet the calm is fragile. Since losing the latest two rounds of fighting in 2023 and 2020, Armenia has rearmed significantly, more than doubling its defence budget in the span of three years. In response, Azerbaijan plans to increase military spending a whopping seven fold in 2025.
Nevertheless, Trump could still step in and clinch a peace deal in the region with relative ease that would immediately benefit Americans, and a peace deal between Armenia and Azerbaijan could secure two of his major foreign policy goals, namely bolstering global energy security and finding alternative sources for rare earth metals to China.