MercoPress. South Atlantic News Agency

Argentina halts Jerusalem Embassy move amid Falklands oil drilling dispute

Milei first announced his intention to move the diplomatic HQ from Tel Aviv to Jerusalem during a visit to Israel in Feb. 2024 and reiterated that he was looking to inaugurate it in the spring

Argentina has reportedly put on hold its plan to relocate its embassy in Israel to Jerusalem after diplomatic friction linked to offshore oil drilling near the Falkland Islands, Israeli broadcaster Channel 12 reported over the weekend.

According to the broadcaster, the suspension of the move is related to a plan by Navitas Petroleum to drill offshore near the archipelago: a project estimated at US$2.1 billion and scheduled to begin operations in 2028.

In December, Argentina’s Foreign Ministry rejected the companies’ “Final Investment Decision” on the Sea Lion development, saying the project was announced without authorization from Argentina’s competent authorities and therefore amounted to an “unlawful” move amid the sovereignty dispute.

Channel 12 said Foreign Minister Gideon Sa’ar sought to reassure Argentine officials that Israel’s government is not involved in — and does not control — Navitas’s operations, given it is a publicly listed company. But the broadcaster cited anonymous sources close to President Javier Milei as saying the disagreement has “effectively halted” the embassy relocation and could strain bilateral ties.

 

Milei first announced his intention to move the embassy during a February 2024 visit to Israel and later reiterated plans to open a new mission in Jerusalem.

The decision carries outsized diplomatic symbolism. Jerusalem’s status remains internationally sensitive, and most countries keep their embassies in Tel Aviv pending a negotiated outcome. Channel 12 noted that if Argentina proceeds, it would join a small group of countries that have relocated their missions to Jerusalem, including the United States and a handful of others.

Channel 12 framed the dispute around an issue long treated as non-negotiable in Buenos Aires: the Falkland Islands, a British overseas territory claimed by Argentina. In December, Argentina’s government denounced the Sea Lion project as “illegitimate,” arguing it was advanced without Argentina’s authorization and therefore amounted — in its view — to a unilateral British move in contested waters.

The broadcaster added that Argentina has previously moved to restrict the companies involved domestically, saying Rockhopper has been barred from operating in Argentina since 2013, while Navitas was similarly banned in 2022 over drilling activity without authorization.

Israel’s Foreign Ministry has sought to limit diplomatic fallout. According to Channel 12, it reiterated that Argentina under Milei is “one of Israel’s best and closest friends,” and said the matter “will continue to be discussed between parties,” even as sources close to Milei warned the disagreement could strain ties.