U.S. President Donald Trump speaks during a cabinet meeting at the White House in Washington, D.C., U.S., July 8, 2025. Photo: Kevin Lamarque via Reuters Connect.

i24 News – Iran will block the establishment of a US-backed transit corridor in the South Caucasus region with or without Moscow’s help, a senior adviser to Iran’s supreme leader was quoted as saying on Saturday by the Iran International website, one day after the historic peace agreement between Azerbaijan and Armenia.

“Mr. Trump thinks the Caucasus is a piece of real estate he can lease for 99 years,” Ali Akbar Velayati said of the so-called Zangezur corridor, the establishment of which is stipulated in the peace deal unveiled on Friday by US President Donald Trump. The White House said the transit route would facilitate greater exports of energy and other resources.

“This passage will not become a gateway for Trump’s mercenaries — it will become their graveyard,” the Khamenei advisor added.

Baku and Yerevan have been at loggerheads since the late 1980s when Nagorno-Karabakh, a mountainous Azerbaijani region mostly populated by ethnic Armenians, broke away from Azerbaijan with support from Armenia. Azerbaijan took back full control of the region in 2023, prompting or forcing almost all of the territory’s 100,000 ethnic Armenians to flee to Armenia.

Yet that painful history was put to the side on Friday at the White House, as Trump oversaw a signing ceremony, flanked by Azerbaijani President Ilham Aliyev and Armenian Prime Minister Nikol Pashinyan.

The peace deal with Azerbaijan—a pro-Western ally of Israel—is expected to pull Armenia out of the Russian and Iranian sphere of influence and could transform the South Caucasus, an energy-producing region neighboring Russia, Europe, Turkey and Iran.