Recent geopolitical developments in the South Caucasus region, especially after the Second and Third Karabakh Wars, have had far-reaching consequences on the balance of power, regional alliances, and geopolitical relations among the main players in the region. In the meantime, the Islamic Republic of Iran has been directly affected by these developments due to its geographical proximity and shared strategic interests with the main players in the region. The increasing influence of Azerbaijan, Turkey, and the Zionist regime in regional power equations, along with increasing efforts to implement the Zangezur Corridor, has caused a change in the geopolitical order of the region and has confronted Iran's position with emerging challenges. The present study aims to analyze the geopolitical consequences of the Karabakh developments on Iran's strategic position in the South Caucasus and to explain the dimensions of its impact on the borders of Iran and the Republic of Azerbaijan. The research method is descriptive-analytical and based on an interpretive paradigm, in which data have been collected and analyzed through library studies and content analysis of specialized sources. The findings show that the developments in Karabakh have led to a redefinition of the geographical sources of power, especially in the security, transit, energy, and ethnic spheres. Relying on the support of Turkey and the Zionist regime, Azerbaijan has been able to enhance its position in geopolitical equations and marginalize Iran's position in regional projects.