The past month has been largely a happy one for Iranian foreign policy. Taking advantage of Washington’s focus on competition with the great powers, Riyadh’s dissatisfaction with the limits of US solicitude for the interests of the Saudi monarchy, and Beijing’s interest in scoring easy points against Washington, the Islamic Republic has succeeded in reducing tensions with Saudi Arabia and the GCC, opening up the potential for Arab trade and investment in Iran, and obtaining breathing room for Iran’s wheezing economy and volatile society. However, not all is well in the neighborhood. We have reported on the deteriorating relations between Iran and Azerbaijan for several months, especially during the past couple of weeks. Iran may be singing Kumbaya with the Gulf Arabs for now, but trouble is brewing up north. The trouble in the South Caucasus bears at least a family resemblance to the shifting geopolitics in the Persian Gulf. Read more here.