Since 1991, there has been great potential for economic cooperation between the Republic of Azerbaijan and the Islamic Republic of Iran, and following the nuclear deal and the lifting of international sanctions, this has become even more apparent. The collapse of the Soviet Union had a significant effect on the geopolitics of Iran, especially on its northern borders with the Caucasus. However, international sanctions against Iran had been a barrier to expanded economic and political cooperation between Iran and the Caucasus, specifically Azerbaijan. Therefore, it seems likely that the post-sanctions era will see economic and trade cooperation between Iran and Azerbaijan develop rapidly. This article provides an overview of economic relation between these two neighboring states following the Nuclear Deal and discusses the prospects for high-level cooperation.