US-backed Transit Route Set to Reshuffle South Caucasus Trade, Geopolitics

Planned route will stimulate trade between former enemies and establish a U.S. presence in the South Caucasus region, experts said.

U.S. President Donald Trump (C), Azerbaijani President Ilham Aliyev (L), and Armenian Prime Minister Nikol Pashinyan (R) hold up an agreement signed during a ceremony in the East Room of the White House on Aug. 8, 2025. Andrew Harnik/Getty Images

Armenia and Azerbaijan on Aug. 8 signed a U.S.-backed joint declaration aimed at ending decades of conflict between the two South Caucasus nations.

Hosted by U.S. President Donald Trump at the White House, Armenian Prime Minister Nikol Pashinyan and Azerbaijani President Ilham Aliyev also signed a second agreement paving the way for a U.S.-developed regional transit corridor.