In recent years, Azerbaijani–Israeli strategic ties have been fostered by frequent high-level diplomatic visits, as well as bilateral agreements that underline strong economic and political bonds between the two countries that imply a long-lasting, valuable partnership. This article explores the reasons behind the strengthened cooperation between Azerbaijan and Israel, reasons that range from strategic and political to energy and economic factors. The article further examines the impact of such a partnership on the geopolitical tendencies in the Middle East, in particular Iran’s response. While the strengthened Azerbaijani–Israeli collaboration across various fields has been mutually beneficial for both countries, it has met with harsh criticism from Iran, which interprets such cooperation as a serious threat to its security. Undoubtedly, recent relations between Azerbaijan and Israel have raised some concerns about security issues, as well as discussions on the potential expansion of cooperation in the Middle East. The partnership has reverberated within the geopolitical dynamics of the Middle East in various ways, ranging from Iran’s shifting foreign policy strategy that seeks to undermine the blossoming Azerbaijani– Israeli relationship to the potential development of a stronger relationship between Israel and Türkiye.