This paper examines the Trans-Caucasus Transit Corridor (TCTC) as a strategic linchpin in EU connectivity between Europe and Asia. It argues that sustainable peace between Armenia and Azerbaijan is essential for unlocking the corridor’s full potential, particularly amid shifting geopolitical dynamics and ongoing instability in the Middle East. The study highlights how Russia’s conflict-driven influence and Azerbaijan’s posture hinder integration and development. It outlines the European Union’s strategic leverage and proposes a policy framework that links investment, inclusion, and deterrence to peace, particularly in the face of the August 8 trilateral meeting between the leaders of Armenia, Azerbaijan, and the U.S. The TCTC is presented as both a test and opportunity for EU geopolitical coherence and ambition.