South Caucasus Navigating Economic and Security Effects of Iran Conflict

South Caucasus Navigating Economic and Security Effects of Iran Conflict

Executive Summary: The Iran conflict is transforming the South Caucasus by disrupting trade routes, shifting regional power balances, and increasing the strategic importance of transport corridors linking Europe, Central Asia, and the People’s Republic of China that bypass Iran. Armenia faces growing economic and political pressure because a significant portion of its trade and energy infrastructure depends on Iran. Disruptions threaten domesti…