Cairo – Amid the rapid changes in global and regional order, Iranian President Masuud Pezeshkian’s recent visit to Baku, marked by strategic agreements and assertive political statements, is a re-adjusted Iranian strategy aimed at redefine the geopolitical and economic role in its neighbouring areas.
The visit also aimed to repair previously tense relationships with Azerbaijan. Presidential advisor Mehdi Sanaei explained that he achieved “significant results.” Visits are more than a ritual gesture, especially in promoting political trust. It reflects Iran’s shift from tactical involvement to forming long-term strategic alliances rooted in a solid economic and security foundation. This could redraw the impact of Iranian regionals during a delicate and transitional period.
The highlight of the visit was a preliminary agreement to draft a “comprehensive strategic cooperation document” between Iran and Azerbaijan. This step is usually reserved for countries with deep-rooted or strategic alliances, and demonstrates Iran’s serious intention to build a robust regional axis with Baku. This drive is facilitated by a common need for stability, mutual economic benefits, and integrity of political perspectives to counter international and regional pressures.
Iran’s growing interest in the economic and developmental aspects of foreign policy was highlighted by Sanaei’s comments on major regional initiatives, particularly the International North and South Transport Corridors (INSC). This project, which connects Russia with Azerbaijan and Iran with India and the Indian Ocean, provides Tehran with a strategic opportunity to become a global transport of goods and energy. It is also a potential route to bypass Western sanctions and unleash vast economic prospects through strengthening trade ties with major powers such as Russia, India and China. This integrates Iran’s role as a regional node for energy transfer and global trade.
Another strategic highlight is the proposed export of Russian gas through Iranian territory through Azerbaijan. The initiative demonstrates Tehran’s intention to leverage the ongoing Russian-European energy standoff by placing itself as a viable alternative transport route. This will increase Iran’s strategic position and strengthen its negotiation capabilities in both regional and international sectors. Similarly, the project will not only serve Russia’s energy export profits, but will also expand Iran’s influence in the Caucasus, Europe and Central Asia, and will be awarded as a key intermediary for the global energy chess board.
Electric links in Iran, Azerbaijan and Russia are another milestone. It illustrates a strategic turn towards regional energy integration. For Iran, who is tackling Western-imposed economic constraints, the project offers an opportunity to escape isolation, build mutual benefits with neighbouring states, and generate direct economic benefits while increasing Tehran’s strategic agility in the region.
In the telecommunications and IT sectors, an agreement between Iranian telecommunications companies and Azerbaijan’s Delta is an important step. It targets the development of communications infrastructure and submarine cables across Iran, and clearly positions the country as a regional data hub between the east and west. The move represents a concrete application of Iran’s “technical diplomacy.” This treats technology not only as an economic asset, but also as a strategic tool to enhance geopolitical impact.
Importantly, this initiative is not limited to bilateral interests from Iran and Azerbaijan. It can also benefit neighboring countries such as Afghanistan, Turkmenistan and Pakistan. Controlling digital traffic routes allows Tehran to provide immeasurable economic and strategic leverage, allowing it to be relocated within the global logistics and supply chain.
President Pezeshkian’s statement at a joint press conference with Azerbaijan emphasized the historical and cultural ties of both countries as the basis for strategic cooperation, as the counterpart of Ilham Aliyev. He highlighted the capabilities of both countries to address regional challenges and establish peace. This is a clear diplomatic signal of Iran’s desire to eliminate tensions and guide a new era of mutual trust and cooperation with Baku.
The President also emphasized the need to develop financial and trade relations as a strategic need, reflecting Iran’s perception that regional economic integration is essential to maintain security, and Iran’s perception that it is under pressure by global forces, particularly by the US, Russia and China.
Iran also views military and security cooperation with Azerbaijan as a strategic order, including a flare between Armenia and Azerbaijan and a wider great competition, particularly in the face of rising Caucasian tensions. Military cooperation can act as a breakwater against foreign interference and enhance regional stability.
Economically, both countries aim to exploit industrial and commercial complementarity. Pezeshkian emphasized the importance of collaboration between producers, fostering joint ventures, knowledge exchange, and creating new markets. This reflects the long-term vision of integration that will help ease Iran’s Western sanctions and build a resilient economic partnership.
All of these developments come when Tehran is trying to redefine the image of the region. Pezeshkian’s emphasis on Islamic solidarity, mutual respect for territorial integrity, and regional dialogue reflects Iran’s attempts to present himself as a responsible partner rather than a hegemonic actor, despite the narrative promoted by the enemy.
However, Iran’s strategic vision still faces major challenges. The success of implementing these projects relies on ensuring sustained political stability by Azerbaijan, careful navigation of major rivals, and regional compromises to satisfy multiple stakeholders.
One particularly sensitive issue is its close relationship with Baku with Israel. This is the dynamics of key strategic concerns for Tehran. Azerbaijan, a majority Shiite country, is one of the closest allies in the Islamic world, receiving about 70% of its weapons from Tel Aviv, while supplying about 50% of Israeli oil. This solid cooperation spans defence, energy and technology is deeply concerned about Iran, which sees it as a direct threat to national security.
Trilateral dynamics involving the US, Israel and Azerbaijan add even more complexity. Tehran sees this as an attachment of pressure tactics aimed at the north front. Despite Baku’s claim that Israeli relations are not targeted at neighbors, Iran’s fears are justified. Particularly amid concerns that Azerbaijan’s territory could be used for intelligence reporting work targeting Iran. This situation requires open and transparent diplomacy between Tehran and Baku, alleviating tensions and establishing mutual security assurances.
Given these considerations, Tehran understands the importance of a stable, balanced connection, particularly in light of the positive trajectories seen during Peshschkian visits and the signed strategic agreements. The benefits of shared economy, technology and energy provide both countries with a path to deeper trust and more effective crisis management, particularly in light of Baku’s relations with Israel.
A commitment to mutual in-interference and transparency with third parties may provide the stable foundation needed to sustain regional cooperation. Iran also aims to strengthen its presence in the Caucasus, soften its rivals and establish a broader regional network that can support an inclusive regional consensus by strengthening its relationship with Russia and Armenia.
In conclusion, President Pezeshkian’s visit to Baku and the resulting agreement presents a new strategic phase for Iran based on regional integration through economic, technological and energy cooperation. This reorganization will effectively reconstruct the dynamics of regional forces and help Tehran navigate both internal challenges and external pressures in the near future.