Iran and Azerbaijan are key countries in the Caspian Basin, thanks to their historical continuity, religious and cultural similarities, shared energy resources and strategic position. However, since the independence of Azerbaijan, complex and contradictory interactions have shaped their relationships, influencing the region dynamics. However, in initial stages, political and ideological differences affected the ties, but impacts of sharp increase in geopolitical importance of Caucasus and Caspian Basin in past two decades and role of external factors could not be ignored. Forming of new borders and political blocks as well as reaching energy resources made the region focal point of world geopolitics and provided grounds for intervention of regional and trans-regional powers, aiming to attain their security, political and economic goals and interests. This study examines security, political and economic factors in both internal and external levels, which have contributed in extension of the conflicts between Iran and Azerbaijan in the past two decades.
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