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SEPTEMBER 2026

Israel Pits Argentina And UK Against Each Other As It Eyes Falklands Oil

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Argentine President Javier Milei announced a sweeping package of measures on September 3 targeting offshore oil operations near the disputed Falkland Islands, raising the stakes in a long-standing sovereignty battle.

Yet beneath the diplomatic standoff between Buenos Aires and London lies a glaring contradiction. Milei’s fiercest geopolitical ally, Israel, is quietly helping the United Kingdom extract the very oil Argentina claims as its own.

During a televised address, Milei declared that unauthorized extraction in the South Atlantic poses a “clear and present danger” to Argentina, which calls the territory the Malvinas. He vowed to expedite sanctions against any companies involved in offshore oil production without Buenos Aires’ approval.

“The islanders on their usurped territory do not have a legitimate right to self-determination and any argument on any such self-determination is invalid,” Milei said. He added: “If we do not act swiftly in a few months, they will have the material capacity to access the oil that lies underneath our sea”.

His primary target is the Sea Lion project in the North Falkland Basin. Slated to begin production in 2028, the multi-billion-dollar initiative is operated by Navitas Petroleum — an Israel-based energy firm holding a controlling 65% stake — alongside its British partner, Rockhopper Exploration.

The announcement triggered immediate pushback from London on September 4. British Foreign Secretary Ed Miliband dismissed the Argentine claims, writing on the social media platform X that “The UK’s position on the Falkland Islands is unwavering”.

“The Islands are British and will remain so because that is the overwhelming position of the Islanders,” Miliband wrote. “Their right of self-determination is paramount, grounded in international law and we will resolutely uphold it”.

British Defense Secretary Wes Streeting echoed the sentiment, characterizing Milei’s fiery address as a distraction tactic for a president facing sinking approval ratings.

“Milei’s statement overnight tells us more about domestic politics in Argentina than it does about the Falkland Islands,” Streeting said.

For Milei, the involvement of an Israeli corporation in a British oil venture underscores a profound diplomatic paradox. The Argentine leader has anchored his foreign policy on unwavering support for Israel, yet he finds his nationalist ambitions undermined by Israeli corporate interests.

This contradiction was amplified late last month by Yair Netanyahu, the oldest son of Israeli Prime Minister Benjamin Netanyahu.

Amid worsening relations between Jerusalem and London over the UK Labour government’s criticisms of Israel’s military actions in Gaza and gestures toward Palestinian recognition, the premier’s son sought to weaponize the Falklands dispute against Britain.

Posting in Spanish on X, Yair Netanyahu declared that the Falkland Islands “rightfully belong to Argentina,” dismissing the British territory as “a bunch of rocks”.

The remarks sparked outrage among British politicians. Rupert Lowe, a British lawmaker, responded forcefully: “Following the intervention of Netanyahu’s son, where he states that the Falkland Islands belong to Argentina, it is entirely legitimate to ask what the official Israeli Government position is on the sovereignty of the Falkland Islands”.

The episode appears as a calculated proxy jab. Anger in Israel over London’s recent diplomatic pivots toward Palestinian issues has prompted some Israeli political figures to court nationalist leaders like Milei and flirt with Argentina’s territorial claims.

However, this rhetorical support masks a cynical reality for Buenos Aires. While elements close to the Israeli government offer Argentina hollow solidarity to settle scores with the UK Labour party, Israeli energy executives are actively partnering with the British to extract the contested oil.

Despite his unreserved loyalty to Israel, Milei is left navigating a geopolitical landscape where his allies applaud his sovereignty claims on social media while profiting from the British occupation of his claimed territory.

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