Azerbaijan and Armenia recently locked their horns in a scuffle that escalated to war. For years these two countries have been trying their best to get hold of the breakaway province of Nagorno-Karabakh. It is an Armenian separatist enclave in Azerbaijan. The recent conflict was the first major outbreak since 2016. Historically speaking, this conflict originated during the 20th century during the time of the Soviet Union (present-day Russia). The then commander of the Soviet Union, Joseph Stalin, announced that the Nagorno-Karabakh region would become an autonomous region. It was, therefore, turned into an administrative unit, or an autonomous oblast, created for several smaller countries under the then USSR. During those days, Azerbaijan was called Soviet Azerbaijan, as it was one of the republics of the Soviet Union between 1922 and 1991. A major conflict began in 1988 when the Karabakh Armenians claimed that Karabakh should be transferred from Soviet Azerbaijan to Soviet Armenia. A full-fledged war broke out during the 1990s. A ceasefire between the two countries was signed in 1994 that lasted for the next two decades. Azerbaijan and Armenia are still far from any diplomatic closure as evidenced by their conflict that began in September 2020. It is almost certain that any escalation in the Azerbaijan-Armenia conflict will affect world trade. The Caucasus region – where Azerbaijan and Armenia are located – serves as a significant transport route for oil and gas to the international market. Azerbaijan and Armenia must resolve their issues through dialogue. Their conflicts will only threaten the regional peace, as their respective allies will take sides that could escalate the regional scuffle Nagorno-Karabakh is the bordering region that both Azerbaijan and Armenia claim to own. Several times during the past some form of mediation efforts have been initiated without producing any worthwhile result. Numerous times in the past the two countries have pursued increasing their militarization and have frequently violated ceasefire rules. This has further aggravated the tensions between them. Despite conventional warfare, cyber war was also used on July 14. Reports claimed that t Azerbaijani hackers attacked over thirty Armenian websites. This also included the website of the Armenian government. The Azerbaijan-Armenia conflict has been condemned at the international forefront. France, Russia, Turkey, Iran, and the US were the first to react over the Nagorno-Karabakh clash. Azerbaijan and Armenia were contacted by the US State Department that advised them to cease their resentments at the earliest. Iran’s Foreign Ministry spokesman, Saeed Khatibzadeh said, “Iran is closely monitoring the conflict with concern and calls for an immediate end to the conflict and the start of talks between the two countries. Tehran is ready to use all its capacities to help talks to start between the two sides.” Turkish President Recep Tayyip Erdogan Tweeted that “While I call on the Armenian people to take hold of their future against their leadership that is dragging them to catastrophe and those using it like puppets, we also call on the entire world to stand with Azerbaijan in their battle against invasion and cruelty.” According to a statement given by the Turkish Defence Minister Hulusi Akar, “The biggest obstacle to peace and stability in the Caucasus is the hostile stance of Armenia, and it must immediately turn back from this hostility that will send the region into fire. We will support our Azerbaijani brothers with all our means in their fight to protect their territorial integrity.” Similarly, the Russian foreign minister said, “We are calling on the sides to immediately halt fire and begin talks to stabilize the situation.” Russia has been concerned over a full-scale war that may break out between Azerbaijan and Armenia. Furthermore, any surge in violence will most possibly disrupt the trade and economic operations of the markets in the South Caucasus region. This could lead to the destabilization of the trade of oil and gas from the Caspian Sea to world markets. According to reports, Azerbaijan generates over 800,000 barrels of oil per day. These are exported to Central Asian states and Europe. Azerbaijan and Armenia must resolve their issues through dialogue. Their conflicts will only threaten the regional peace, as their respective allies will take sides that could escalate the regional scuffle. At this time when the world is fighting against Covid-19 and all trade and economic aspects have been hampered because of the lockdown, the world, or any region of it cannot afford to handle another conflict. Russia has been supporting Armenia while Turkey has called to be at the side of Azerbaijan. Iran, on the other hand, has a large Azeri minority, that could heighten the regional crisis to the next level and may blow the crisis out of proportion. This scenario spells nothing but a disaster at the diplomatic and military forefront. Azerbaijan and Armenia should settle their disputes on the table. If it is settled on the battlefield, then their allies may also have to enter the equation that will not bode well for any country. The writer is an independent researcher, author and columnist