Baku

Baku is the capital and largest city of Azerbaijan, with a population of approximately 3 million people. Located on the western coast of the Caspian Sea, it has served as a major regional economic center for over a century due to its strategic position and vast oil and natural gas reserves. The city is home to Azerbaijan’s government institutions, including the presidential office and parliament, and hosts the country’s financial and banking sectors. Baku’s urban landscape reflects its oil wealth, with modern skyscrapers, cultural institutions, and infrastructure development alongside older Soviet-era architecture. The city is connected to European energy markets through major pipelines, including the Baku-Tbilisi-Ceyhan (BTC) oil pipeline and the Southern Gas Corridor, making it a critical node in global energy infrastructure. Baku also serves as a transportation hub, with an international airport and port facilities connecting Azerbaijan to regional and international trade networks.

Baku functions as the political and diplomatic hub of Azerbaijan’s regional strategy. As the capital, it hosts the machinery of Ilham Aliyev ’s government and serves as the venue for high-level regional negotiations, including Armenia-Azerbaijan peace process talks and state visits from regional and international powers. The city’s prominence in South Caucasus geopolitics has intensified since Azerbaijan’s military victory in the 44-Day War and its subsequent complete capture of Artsakh in a 24-hour offensive on September 19–20, 2023, which ethnically cleansed the territory of its more than 150,000 Armenian inhabitants. Baku’s role as the administrative center for Azerbaijan’s control over the now-dissolved enclave has made it the focal point for disputes over the territory’s future status, the rights of its former Armenian population, and the implementation of peace agreements.

Baku has emerged as a destination for high-profile diplomatic visits that signal shifting regional alignments. In February 2026, Vice President JD Vance visited both Yerevan and Baku as part of the Trump administration’s engagement with the South Caucasus, a visit framed around the TRIPP corridor project and U.S. strategic interests in the region. The Baku leg of Vance’s trip included a “Strategic Partnership Charter” announcement and reflected the depth of U.S.-Azerbaijan ties, a dynamic that differs markedly from the American approach to Armenia. Baku has also become a destination for European and other international leaders seeking to navigate Azerbaijan’s role in regional energy supplies and transit infrastructure, including TRIPP and broader pan-Turkic integration projects that connect Azerbaijan, Turkey , and Nakhijevan .

Baku’s significance as a capital reflects Azerbaijan’s strategic position as a supplier of natural gas to Europe following Russia ’s 2022 invasion of Ukraine, a role that creates structural tensions in the Armenia-Azerbaijan peace process . Europe’s energy dependence on Azerbaijani gas supplies limits the willingness of Brussels to apply sustained pressure on Baku over Azerbaijan’s conduct toward Armenia or the enforced displacement of Artsakh’s Armenian population. Azerbaijan’s ties with Israel have also deepened, particularly after the capture of Artsakh, positioning Baku as a diplomatic hub in a broader regional alignment that includes Turkey and excludes Iran. The Iran war , which erupted in early 2026, has further elevated Baku’s strategic value to the United States and Israel, with reports of potential northern front military coordination and constitutional changes in Nakhijevan that may reflect deeper shifts in Azerbaijan’s geopolitical orientation away from Tehran.

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