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Iran, Israel and the Rising Tensions in the Caucasus

Source: AFP/Getty Images

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Iran is building up Bloomberg Terminalits military presence on its border with Azerbaijan in a dispute between the neighbors over Israel. What started as local muscle-flexing could develop into a more serious confrontation with wider ramifications for a region crisscrossed by pipelines shipping oil and natural gas to the West, and in which Russia and Turkey also have strong interests.

The most recent tensions began when Iran alleged that Azerbaijan was allowing Israel’s military to have a presence near the Iran-Azerbaijan border. Citing “Israel’s presence,” Iran staged military drills close to the border on Oct. 1. Azerbaijani President Ilham Aliyev denied harboring Israeli forces and countered by holding military exercises with Turkey, an ally. More broadly, Baku’s closeness to Israel, especially with regards to its military trade, worries Tehran, which suspects Israel is behind clandestine attacks on its nuclear program. While Iran and Azerbaijan are both majority Shiite Muslim countries that share strong ethnic and linguistic ties and centuries of history, there are also tensions after last year’s war between Azerbaijan and neighboring Armenia over the territory of Nagorno-Karabakh.