Argentine President Javier Milei has escalated the dispute with Britain over the Falkland Islands, announcing plans for tougher economic sanctions against companies involved in offshore oil development and additional funding for a naval base in Tierra del Fuego.
Milei focused on the Sea Lion project, where Britain’s Rockhopper Exploration and Israel’s Navitas Petroleum plan oil operations near the British-controlled islands, which Argentina calls the Malvinas.
His push comes as U.S. President Donald Trump has suggested Washington could reconsider its longstanding neutral position on the competing sovereignty claims.
Milei described the Sea Lion development as a threat to Argentina’s interests and said his government would move quickly against companies participating in projects it considers unauthorized.
Proposed measures could extend penalties beyond energy companies to suppliers, shareholders and directors, while restricting businesses connected to the projects from operating or securing contracts in Argentina.
Milei also pledged additional funding for a naval base in Tierra del Fuego and improvements to telecommunications capabilities as part of efforts to strengthen Argentina’s South Atlantic presence.
The Sea Lion field lies roughly 130 miles from the islands and is estimated to contain 1.7 billion barrels of oil.
Rockhopper and Navitas are preparing the project, with oil production expected to begin in 2028.
Britain rejected Milei’s position, reaffirming that the Falkland Islanders have the right to determine their political status and exploit their natural resources.
British Defence Secretary Wes Streeting described Britain’s commitment to the islands as “absolute and unshakeable.”
Milei also seized on Trump’s recent comments about the dispute, presenting them as evidence that Argentina’s relationship with Washington could strengthen its sovereignty campaign.
Trump said this week that the U.S. position was among those he reviews and later avoided directly saying whether Washington would aid Britain in another Falklands conflict.
Instead, Trump criticized Britain for not providing sufficient support during the U.S.-led campaign against Iran.
Argentina maintains that it inherited sovereignty over the islands from Spain, while Britain rejects the claim and points to the islanders’ preference to remain a British overseas territory.
The dispute retains substantial political importance in Argentina, where Milei faces pressure from opponents over his handling of the sovereignty claim.
His latest measures link that longstanding dispute increasingly closely to offshore energy development, military presence and shifting international diplomacy.