Javier Gerardo Milei. Foto Office of Argentine Presidency
In an address to the nation, Milei stated that Argentina intends to halt development of the deep-water Sea Lion field, located approximately 220 km north of the islands, reports the AP. The project is being carried out by the British company Rockhopper Exploration and the Israeli firm Navitas Petroleum. The companies expect to begin drilling in the coming months, with production set to start in 2028.
Buenos Aires considers the development to be illegal, as it does not recognise British sovereignty over the archipelago and regards its continental shelf as its own territory. Milei has promised to tighten sanctions against those involved in the oil projects — including restrictions on suppliers, shareholders and company directors.
Trump sends an unwelcome signal to London
At the same time, Argentina intends to strengthen its military presence in the south of the country. The government will allocate additional funds for the construction of a naval base in Tierra del Fuego and the modernisation of telecommunications infrastructure in the region.
This new round of the conflict coincided with unexpected statements from Trump. When asked about a possible review of the US position on the Falklands, the US President replied that he ‘always reviews every position’. He later refused to explicitly confirm that Washington would support the UK in the event of a new conflict over the islands, whilst at the same time criticising London for failing to provide sufficient support for a US military operation against Iran.
For Milei, this has become a political asset. His administration can present a possible shift in the US position as the result of its special relationship with Trump — particularly against the backdrop of the president’s falling popularity and the economic downturn in Argentina.
Oil is turning an old dispute into an economic conflict
The economic factor makes the dispute even more acute. Potential oil production could turn the Falkland Islands into a major oil asset, increasing their economic independence and strengthening the British presence in the South Atlantic.
The 1982 Falklands War remains one of the most sensitive issues in Argentine politics. However, a specific economic incentive – control over potentially vast oil reserves – has now been added to the historical dispute.
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