The South Caucasus region has always been an important player in regional geopolitics, closely connected with the national interests and security of Russia, Iran, and Turkiye. Its significance increased significantly after the Soviet Union's collapse. The region is a strategically vital transport hub, where communication and trade routes from East to West (the ancient Silk Road) and from South to North intersect. However, ongoing conflicts between Georgia, Abkhazia, and South Ossetia, as well as between Azerbaijan and Armenia, have hindered the region's economic development. These conflicts have partially blocked the region, which has crucially impacted its political development. The most dangerous conflict is between Armenia and Azerbaijan over the status of Nagorno-Karabakh. In 2020, Azerbaijan regained control of seven regions around Karabakh, which were occupied by Armenians during the first Armenian-Azerbaijani war in the early 1990s. In 2023, during a one-day special operation, Azerbaijan established full control over the territory of the former Nagorno-Karabakh Autonomous Region. The Azerbaijani army's victorious military operations have changed the balance of forces, opening up new opportunities for strengthening peace and developing economic, political, and cultural cooperation between the countries of the region. This paper examines how the Armenian-Azerbaijani confrontation impacted on the geopolitical situation in the South Caucasian region. The official and historical documentation as well as diplomatic reports and media outlets analyzed for these purposes. The comparative-descriptive method was applied to analyze the sources.