Petroleum products are being transported by rail from Azerbaijan to Armenia for the first time in decades. The move is hailed as a tangible breakthrough in efforts to normalise relations between the long-time rivals.
The delivery began on 18 December, when Azerbaijan shipped oil products to Armenia by rail, signalling that dialogue between the two countries is translating into practical economic cooperation.
The initial shipment consists of 22 rail tank cars carrying 1,210 tonnes of AI-95 petrol, produced by Azerbaijan’s state oil company, SOCAR.
Officials on both sides have described the export as a significant step that goes beyond political statements and reflects the real economic benefits of peace.
The fuel shipment follows an agreement reached on 28 November in Gabala, a city in the north west of Azerbaijan, where Deputy Prime Minister Shahin Mustafayev met with Armenia’s Deputy Prime Minister Mher Grigoryan.
During that meeting, the two sides discussed measures to build trust and revive economic links that had been severed by decades of conflict and closed borders.
Azerbaijani officials say the export demonstrates the country’s readiness to engage in mutually beneficial trade with Armenia, while Armenian representatives have framed the delivery as a practical contribution to energy security and economic stability.
Both governments have highlighted the symbolic importance of rail transport, which had been suspended for years due to hostilities, as a foundation for restoring broader connectivity in the region.
Analysts say the move could have far-reaching implications beyond fuel supplies.
By reopening trade routes and establishing reliable commercial ties, the agreement will help strengthen regional integration, encourage further economic cooperation and create momentum for additional confidence-building measures.
In the longer term, they argue, such steps could pave the way for expanded trade across the South Caucasus, linking Armenia, Azerbaijan and neighbouring states through revived transport and energy corridors.
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Shipping through the Strait of Hormuz has slowed, according to the latest data, as uncertainty over the waterway’s reopening kept most shipowners away. Six commodity vessels crossed the strait on Tuesday, down from nine the day before and below the 10-day daily average of 11.
Shipping traffic through the Strait of Hormuz remains limited on Thursday, with no increase in vessel crossings as U.S.-Iran talks to resolve the conflict remained stalled. Nine commodity vessels transited the key waterway on Wednesday, unchanged from the previous day, according to Kpler data.
Iran has said the Strait of Hormuz will remain closed until the U.S. fulfils the terms of an interim deal, including lifting the maritime blockade and sanctions and releasing Iran’s frozen assets.
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