American funding for Argentina and South Korea seeking to reduce their oil dependence on the Middle East

The US Export-Import Bank (Exim Bank) intends to finance projects in Argentina worth up to $7 billion in the vital minerals and energy sectors, in a move aimed at strengthening economic cooperation between Washington and Buenos Aires, and expanding American companies’ access to strategic resources in South America, according to a document seen by Reuters.

The funding is scheduled to be announced as part of a cooperation package between the two countries in New York on Wednesday, coinciding with the meetings of the United Nations General Assembly, according to a source familiar with the matter.

The move comes at a time when the United States is working to secure greater access to vital energy and mineral resources in the Western Hemisphere, in light of the increasing importance of these resources for strategic industries and technologies.

Economic relations between Washington and Buenos Aires were strengthened during the era of Argentine President Javier Mele, who has a close relationship with US President Donald Trump, with greater convergence in economic policies and American support for the reforms adopted by the Argentine government.

Last February, the two countries announced a preferential trade and investment agreement that includes cooperation in the field of vital minerals, but the Argentine Congress has not yet ratified the agreement.

Argentina has large reserves of lithium and shale oil, along with other resources, while American financing will allow companies operating in the country to obtain loans to purchase equipment from American manufacturers, in addition to other uses, during the next two years.

Argentina, along with Chile and Bolivia, is part of what is known as the “Lithium Triangle,” which includes a large concentration of supplies of this metal used in electronics, electric cars, and a number of modern technologies.

Major international companies in the primary commodities sectors are already operating in Argentina, including Rio Tinto, which extracts lithium used in batteries, BHP, which is developing a copper project, and Chevron, which operates a large oil and shale gas project.

Milley's government is pushing to attract more foreign investment to strategic sectors, through a system of incentives for large investments known as "REGI", which includes the energy, mining, and infrastructure sectors.

Last month, the Italian company Eni and the Argentine government company YBF submitted a joint request to benefit from the Regie system to implement a liquefied natural gas project worth $51 billion.

Argentina expects a significant increase in its mineral exports over the next decade. Argentine Mining Minister Luis Lucero told Reuters earlier this year that by 2036 his country could export 580,000 metric tons of lithium and 1.641 million metric tons of copper annually, about five times the 2025 levels.

South Korea's Ministry of Industry said that Seoul seeks to reduce its dependence on crude oil coming from the Middle East to 50 percent by 2035, as part of efforts by Asia's fourth-largest economy to diversify energy sources after the turmoil caused by the Iran war.

In its ten-year plan for natural resources security, the ministry added that South Korea needs a “radical transformation” in supply chains, citing lessons learned from the Iranian war that disrupted global energy flows.

South Korea relies heavily on oil imports, and the ministry said it obtained 70 percent of its supplies from the Middle East in 2025, most of which arrived through the Strait of Hormuz.

The ministry stated that South Korea is also seeking to secure additional quantities of condensate, which is a very light oil that is often used in the production of naphtha.

South Korea has been suffering from a shortage of naphtha, the basic raw material for the petrochemical industry, since the outbreak of conflict in the Middle East.

As for natural gas, the government aims to reduce its dependence on imports from the Middle East to less than 30 percent by 2035.

Preliminary shipping data showed today (Wednesday) that 3 ships carrying primary goods crossed the Strait of Hormuz yesterday (Tuesday), a decrease from 4 ships the previous day, and less than the 10-day moving average of about 15 ships.

These numbers may change; Some ships usually turn off their transmitters and receivers while sailing.

Data from the ship tracking company Kepler showed at 02:00 GMT that the three ships - including a Panamax tanker - were leaving the strait.

Data from Kepler and the London Stock Exchange Group indicated that the liquefied natural gas tanker “Alemvir” reappeared inside the strait yesterday (Tuesday), after it was last seen outside the waterway on September 19.

Before the conflict between the United States and Iran, the Strait of Hormuz transported a fifth of the world's oil and gas supplies.

US President Donald Trump warned yesterday (Tuesday) that he might annihilate Iran if an agreement could not be reached to end the war, but he also indicated that an agreement might be concluded soon amid diplomatic action at the United Nations.

Meanwhile, 22 ships carrying raw goods crossed the Bab al-Mandab Strait yesterday (Tuesday), another maritime chokepoint at the southwestern tip of Yemen, and a vital trade route for transporting oil between the Red Sea and the Gulf of Aden.

The data showed that 14 ships were heading towards the Red Sea and 8 ships towards the Gulf of Aden. These ships included 5 Panamax class tankers, 6 Supramax class tankers, 4 Aframax class tankers, a Suezmax class tanker, and a giant crude oil tanker.

This number compares to an average of about 26 ships that sailed through the strait during the past 10 days.