Formula One can swing on tiny margins, almost imperceptible gains can be all important. They are the difference through which championships are won and lost and Lewis Hamilton must believe he is making just that difference with a majestic run to pole position for the Azerbaijan Grand Prix. Tellingly, he did so with a lap that proved he not only has an edge over his rivals, but that he is beginning to leave them behind.

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Hamilton has yet to lead the world championship this season; the closest he has come is tying with Ferrari’s Sebastian Vettel after the Chinese Grand Prix. Since then, the German has been ahead, currently with a 12-point advantage. Hamilton’s performance in Baku suggests he not only has the momentum but that there is a real chance he will be on top after Sunday’s race.

He took pole after a nail-biting final run, delayed because of a late red flag, with a lap that was as exceptional as it was untouchable. He was pushed by his team-mate, Valtteri Bottas, who finished in second, but the Finn could not match him. Hamilton had his car on the limit, particularly through the final two sectors, and by the end the advantage he had gained was a gulf. He finished half a second up on Bottas.

“It was do or die,” he said. “If ever there was a time for me to perfect, that was the time. In qualifying, sometimes you don’t extract it, but it was a perfect lap.” Not only perfect, but against the odds. During his first hot run in Q3 he lost time in the final sector going wide and he was on a quicker lap when Daniel Ricciardo’s Red Bull hit a wall and the red flags came out.

It left barely enough time to complete two laps – the minimum to bring the tyres up to temperature for a flying lap and one fewer than they had previously been taking. “All weekend we have not been able to do it on one [preparation] lap, but others have, so I had to give it everything,” Hamilton said. “I came across the line so happy because, even if I was second, it was still an awesome one, a single lap, which I was really proud of.”

Kimi Raikkonen was in third but Vettel could manage only fourth and said he was not happy and could have done better, but was confident there was more to come. “In the long run we looked very competitive, so it should be fine,” he said. “Tomorrow could be a different story. The race pace should be a lot closer.”

Were the positions to remain the same at the end of the race then Hamilton would take the lead in the title fight by one point. The win is the first target for the 32-year-old, but he is on a roll. He qualified on pole at the last round in Canada, another exceptional lap bettered only by this performance, and then went on to take the flag. “My last lap in Montreal was pretty special,” he said. “But this one topped it”

Better still for the Briton and his team is that the improvements they made after struggling with set-up in Monaco have transferred to Baku. This track shares many characteristics with Monte Carlo. It is demanding on traction, putting heavy stress on the rear tyres. Equally, the combination of long straights and short corners puts less heat into the fronts. Having a set-up that balances the two is a fine line to negotiate.

Hamilton had not found the sweet spot immediately. He was fifth and 10th in the first two practice sessions and third on Saturday morning, having pointed out that he was once again struggling with tyre temperatures. But as the track rubbered in, he found his form and the car right where he wanted it to be. Enough for his fifth pole of the season and the 66th of his career, one better than Ayrton Senna’s tally.

Facebook Twitter Pinterest Sebastian Vettel passes the castle section on his way to finishing fourth in Baku qualifying. Photograph: Dan Istitene/Getty Images

Mercedes have a front-row lockout, their second of the season, but crucially with Hamilton a full second faster than Raikkonen and Vettel, an achievement acknowledged by Niki Lauda, the Mercedes’ nonexecutive chairman. “I’ve never seen anything like it,” he said. “What he did today, nobody else can do that. He’s fantastic.”

On this form that is hard to argue with. The test on Sunday remains what counts, over what, for the front runners, will almost certainly be a one-stopper but with the car hooked up and Bottas likely to be his rear-gunner, Hamilton has all the margin he needs.

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The Red Bull of Max Verstappen was in fifth, with Ricciardo in 10th. They were followed by strong runs again from the Force India’s of Sergio Pérez and Esteban Ocon respectively. Lance Stroll, showing new confidence after scoring his first points in Canada, did well to make it into Q3, from where he qualified in eighth, one place ahead of his Williams team-mate Felipe Massa.

Fernando Alonso qualified in 16th place after yet another turbulent weekend for McLaren’s engine supplier Honda; he will take a 40-place grid penalty and will start from 19th place. His team-mate Stoffel Vandoorne was only barely in better shape. He qualified in 19th and has a 35-place grid penalty, but – because of Jolyon Palmer failing to take part in qualifying – will start from 18th on the grid.

Britain’s Palmer, whose future with Renault has come under question this weekend, suffered a high-pressure fuel leak that caused a fire on his car in final practice. He was unable to take part in qualifying and will be allowed to start from the back of the grid or the pit lane.

Toro Rosso’ s Daniil Kvyat was in 11th and his team-mate Carlos Sainz Jr in 12th. Kevin Magnussen, in the Haas, was in 13th, followed by the Renault of Nico Hülkenberg and Sauber’s Pascal Wehrlein. Romain Grosjean, in the Haas, was in 17th, with the Sauber of Marcus Ericsson in 18th, both eliminated in Q1.