Argentina to 'pause Jerusalem embassy move' over Falklands drilling dispute with Israel

The Argentinian Foreign Ministry has decided to pause plans to move its embassy in Israel to occupied Jerusalem, over recent tensions between Prime Minister Benjamin Netanyahu and President Javier Milei, according to Israeli reports.

Israel’s Channel 12 said the tensions are related to a dispute over the Falkland Islands, where the Israeli-owned Navitas Petroleum Company plans to carry out offshore drilling in 2028.

In December, Argentina expressed anger over Navitas and UK firm Rockhopper’s joint $2 billion plan to drill oil in the territory, which they described as "illegitimate" and unapproved by Buenos Aires.

The Falkland Islands are an Overseas British Territory located several hundreds of miles off the coast of Argentina. The islands exercise internal self-governance, with King Charles III as head of state. The archipelago is claimed by Buenos Aires, which went to war with the UK over the islands in the early 1980s. The territory’s status remains a source of dispute between the two states.

Rockhopper and Navitas became partners in an oil drilling project in the North Falkland Basin called Sea Lion several years ago, with the drilling slated for 2028, after a Final Investment Decision was obtained in 2025.

Argentina rejected the plans, calling them "unilateral and illegitimate", and contrary to Argentinian law.

The South American nation’s foreign ministry said it "will deepen its action plan to adopt all additional measures, in accordance with international law, that it deems necessary to safeguard its sovereign rights and interests".

Additionally, Argentina banned Rockhopper from carrying out any activities in the country in 2013, while Navitas has also been banned for 20 years since 2022 over "unauthorised" oil exploration activities near the Falkland Islands, also known as Islas Malvinas in Spanish.

Sources told the Israeli network that the oil exploitation moves would harm Israel-Argentina relations in the long run, despite Milei’s pro-Israeli stance.

Milei, described as a right-wing populist who has received a stamp of approval from US President Donald Trump, was elected in 2023.

Israeli Foreign Minister Gideon Sa’ar has reportedly told Milei that Navitas’ activities are out of Israel’s hands, and told Israeli media that the matter would continue to be "discussed privately".

In 2025, Milei announced his intention to move Argentina’s embassy from Tel Aviv to Jerusalem, pledging to do so some time this year. The pledge mirrors Trump’s controversial decision to do the same in 2017.

Milei made the announcement during his second state visit to Israel that year, amid the deadly war in Gaza, which has killed over 71,000 Palestinians since October 2023.