As Perez attempted to overtake Leclerc from third place, Sainz snuck past to steal the position from the Red Bull star.
Sainz and Perez proceeded to squabble for third as they headed out of Turn 2, with the pair coming together and hitting the barriers in a race ending incident.
The incident prompted a virtual safety car for the remainder of the race, and Oscar Piastri crossed the line first to take the win at the Azerbaijan GP.
Leclerc followed to take second, with George Russell hoovering up third place following the Ferrari and Red Bull stars' collision.
Perez’s failure to score points in Baku, alongside McLaren’s win, has ensured the British team have taken the top spot in the constructors’ championship.
Verstappen passed Lando Norris and Russell once the chequered flag was waved, but the virtual safety car was still deployed which is prohibited according to the FIA.
Whilst the drivers were aware of the location of the incident, caution must be taken in case marshals or emergency equipment are dispatched to the track.
The stewards noted that similar incidents had occurred earlier in the season and had gone unnoticed, therefore all four drivers received a warning.
However, if there are further breaches in a similar vein a driver is likely to receive a penalty.