The main outbreaks of the millennium have to do with the discovery, extraction and using of oil that totally and rapidly transformed the world and in fact have been the core of the geopolitical politics of the great powers. From the late nineteenth century until the present, the story of industrialcivilization as we know it is the story of oil, petroleum, black gold. Based on this reason, one of the central places in the world has been Azerbaijan, which constitutes the south border between Europe and Asia. Jonathan H. Sicotte declares that “We may be able to truly assess the weight of these internal and external pressures only by focusing on Baku’s place within the broader trends that were affecting the world from 1914 to 1920. In this setting, Baku was part of a broader local and geopolitical struggle, both of which were inseparable from the industrialization that had built it into a modern industrial city” (2017: 18-19). Therefore, the purpose of this investigation is to explore the outbreaks affecting Azerbaijan, to explore a causative effect between the industrial and geopolitical dynamics surrounding the country and the political and ethnic violence that ravaged it. Furthermore, the paper will address how position of Baku as “the oil kingdom” was additionally complicated by geopolitical interference caused by the First World War and the issue of Nagorno-Karabakh and their aftermath. The city of Baku and surrounding area is one of the best-known oil regions in theworld. This work aims to analyze how the industrialization of oil secured Baku as a place of immense importance in the global economic order of the period. In order to accomplish this task, this study will examine elements of social, economic, and political history across the late nineteenth, twentieth and early twenty first centuries in its analysis of the factors influencing the Republic of Azerbaijan as well as the neighboring states. These elements continually interacted with the process of industrial production and political economy that defined the place and period