Milley announces sanctions on oil exploration companies near the Falkland Islands, UK-Afghanistan sovereignty dispute intensifies

Author, Will Grant

Role, BBC correspondent in Mexico, Central America and Cuba

Author, Henry Moore

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Author, Chris Graham

Published on September 4, 2026

Reading time: 2 minutes

Argentine President Javier Milei announced that he would impose economic sanctions on any company that exploits oil near the Falkland Islands. This has once again heated up the dispute between Argentina and the United Kingdom over the sovereignty of the South Atlantic Islands.

Milley delivered a national address on Thursday night (September 3). He said that the "winds of change" were favorable to Argentina's sovereignty claims and that the United States might reconsider its neutral position on this issue, which greatly increased his confidence.

Milley's speech came shortly after US President Donald Trump hinted in an interview with GB News that he might not be willing to help if a conflict breaks out between the UK and Argentina over the Falkland Islands in the future.

Trump said Britain "didn't help when we went to war with Iran," although he later said the U.S. military didn't need any support.

The Falkland Islands are located in the southwest Atlantic. The sovereignty dispute caused by the armed conflict more than 40 years ago still exists between Britain and Afghanistan. Successive U.S. governments have formally recognized Britain's de facto administration of the islands, but have not expressed a formal position on the issue of sovereignty.

The British government reiterated this week that the residents of the Falkland Islands "are British and have the right to decide their own future." The BBC is asking the British government about Milley's latest remarks.

Milley's sanctions plan

Milai announced the sanctions plan in the presidential palace, accompanied by cabinet members, reiterating that the Falkland Islands belong to Argentina "from a historical and legal perspective". At its centerpiece is a proposed bill to be introduced in Parliament aimed at imposing sanctions on energy companies planning to conduct oil exploration near the Falkland Islands.

Milley singled out the Sea Lion oil field, describing it as a "clear and present danger." The field is about 130 miles from the Falkland Islands and contains an estimated 1.7 billion barrels of oil.

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Britain's Rockhopper Exploration and Israel's Navitas Petroleum will start exploration work in the field within two years, and Milai said Argentina cannot allow this to happen.

"If we don't act quickly in the next few months, they're going to have the actual ability to access the oil under our oceans -- that's never happened," Milley said.

It is unclear how and to what extent sanctions will be imposed or strengthened; current Argentine law already allows restrictions on the activities of oil companies involved in "unauthorized" projects in the archipelago.

Milley also announced plans to build a naval base in Tierra del Fuego, southern Argentina, and said Trump and the United States were "evaluating their historical positions on the Falkland Islands" - which Argentina calls "Las Malvinas."

"This is not empty talk, because they understand that Argentina will be a reliable partner and a valuable ally for decades to come," he said, describing Britain as a country in "decline".

"The winds of change are blowing in the world in favor of our claims to sovereignty," Milley added.

Hours before he spoke, senior U.S. State Department official Sarah Rogers posted a photo of herself and Milley on social media with the caption: "Exciting things are happening in the Western Hemisphere."

Trump’s statement and the struggle between Britain and the United States

Asked if he would "step in to help the UK" in a potential territorial dispute, Trump told GB News: "Well, look, I was there when the first war happened, and that was a long time ago, and I watched it very closely, and you did a great job. You took it back pretty tough, but it was far away from you."

Referring to the current conflict between the United States and Iran, he added: "So, your country is not doing well. Don't forget, a large part of your oil comes from the Strait of Hormuz, but you didn't help me. Your country didn't help me. We don't need help, but I did ask NATO, and I asked your former leader: 'Why don't you send a few ships?'"

Trump said he was told by then-prime minister Sir Keir Starmer that there were no ships available, describing it as "pretty regrettable" and saying "NATO didn't step in, even though - most of these countries - a lot of the oil comes from there. So we're left to deal with it on our own."

Trump's remarks came after he said the United States might revise its neutral position on the sovereignty of the islands if Britain failed to increase defense spending. Asked by the BBC if he was revisiting the U.S. position on the islands, Trump responded: "I'm always revisiting every position. This is just one of them."

The British government responded that the residents of the Falkland Islands "are British and have the right to decide their own future." A spokesman added: "The islanders have repeatedly expressed their wish to remain a British overseas territory and our commitment to them is unwavering."

In a 2013 referendum, residents of the island voted overwhelmingly, 99.8% to three, to remain a British Overseas Territory.