Argentina’s President Javier Milei has sharply escalated the long-running dispute over the Falkland Islands, reasserting the country’s sovereignty claim and threatening economic sanctions against oil companies operating off the coast of the British overseas territory.
In a nationally televised address, Milei said Argentina would “need to recover” the islands, which Argentina calls Las Malvinas, urging the public to “not stand idly by” and “show a united front to the world,” according to Sky News. The comments mark a notable departure from his previous, more diplomatic approach to the issue as he sought warmer relations with London.
Oil project in the crosshairs
Milei announced plans to impose economic penalties aimed at halting development of the Sea Lion oil project, a major offshore development located roughly 220 kilometers (137 miles) north of the Falklands. Argentina considers the venture an unlawful exploitation of resources in waters it claims as its own.
The project is co-developed by Britain’s Rockhopper Exploration and Israel’s Navitas Petroleum, with first oil targeted for early 2028. Navitas Petroleum did not immediately respond to CNBC’s request for comment, while Rockhopper declined to comment.
U.S. support in question
The Argentine president’s remarks came shortly after U.S. President Donald Trump declined to say whether Washington would assist Britain in a future conflict with Argentina over the islands. In an interview with GB News earlier this week, Trump suggested the U.S. would not back Britain due to a perceived lack of support over the Iran war.
Trump had previously floated the idea of revising the U.S.’s neutral stance on Falklands sovereignty if Britain failed to increase its defense spending. Milei, who frequently casts himself as a Latin American ideological ally of Trump, touted their close relationship during his speech, saying the White House is considering a change in its position because Argentina has shown it “can be a valuable ally in the decades to come.”
UK responds
U.K. Defence Minister Wes Streeting downplayed the significance of Milei’s remarks, saying they “tells us more about domestic politics in Argentina than it does about the Falkland Islands.” In a social media post, Streeting added, “The Falklands are British because Falkland Islanders choose to be British. Our commitment to the Falklands is absolute and unshakeable.”
The Falkland Islands lie about 500 kilometers east of Argentina’s southern coast. Britain has controlled the territory since 1833, though Argentina has long claimed sovereignty. The two countries fought a brief but bitter war over the islands in 1982.
Source: www.cnbc.com — https://www.cnbc.com/2026/09/04/argentina-milei-falklands-oil-uk-trump.html
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