Trump opens door for Argentina to escalate push for oil-rich Falklands

Argentine President Javier Milei announced tougher sanctions Thursday on companies involved in Falklands oil exploration, plus a bill to extend penalties to shareholders and suppliers, days after Trump suggested he was reconsidering the U.S. position on the islands. The immediate target is Sea Lion, a British-Israeli offshore project expected to start pumping oil in 2028.

Milei also announced a new naval base in Tierra del Fuego and a National Security Council, framed by his government as strengthening sovereignty claims. Analysts note the sanctions carry real economic teeth by threatening companies' access to Vaca Muerta, Argentina's major shale formation, even though Britain retains control and Argentina has no military means to change that.

Trump's comments, that he 'always reviews every position,' fall well short of recognizing Argentine sovereignty, and follow friction with Britain over the Iran war. Experts describe Milei's move as a rhetorical shift toward confrontation rather than a change in the actual balance of power, with the issue likely to resurface at the UN General Assembly this month.

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