After more than a decade of negotiations, the economic sanctions against Iran were lifted in January. Iran, P5+1 countries, and the European Union agreed on the adoption of a Joint Comprehensive Plan of Action (JCPOA). The JCPOA limited the Islamic Republic’s nuclear program as a quid-pro-quo for a return to the oil market. Iran’s return to global oil markets would mean a new challenge both for Europe and the South Caucasus. This paper will examine the political and economic implications of the lifting of sanctions for the South Caucasus region.