Azerbaijan released two Iranian truck drivers arrested on Thursday last month, allegations of illegal entry into the country led to a straining of relations between Baku and Tehran.
The move marks a melting point in relations between Azerbaijan and Iran, a week after their foreign ministers agreed to resolve the crisis in relations through dialogue.
The Azerbaijani customs department announced on Thursday that it had handed over the driver to the Iranian side by a decision “guided by the principles of humanism, mutual respect and good neighborly relations”. The confrontation between the countries was caused by Tehran's accusations that its sworn enemy Israel maintains a military presence in Azerbaijan. Baku rejected these claims.
Iran has promised to take all necessary measures and conducted military exercises near its border with Azerbaijan.
Azerbaijani Foreign Minister Jeyhun Bayramov spoke by telephone to his Iranian colleague Hossein Amir-Abdollahian last week, and the couple agreed to resolve the disputes through dialogue.
Israel is a major arms supplier to Azerbaijan, which won a six-week war with neighboring Armenia at the end of last year to control the dispute. Nagorno-Karabakh region.
Azerbaijan and Iran have long argued over Tehran's support for Armenia in the decade-long Nagorno-Karabakh conflict.