Britain and Argentina fought a 10-week war in 1982 over the South Atlantic islands, a British overseas territory which Argentines call Las Malvinas.
The fate of the islands hit headlines again in recent days after US President Donald Trump threatened to wade into the dispute, and an British-Israeli oil project near the islands caused anger in Argentina.
In an address on national TV, Milei assured Thursday that Argentina would not "stand idly by" in the face of the oil project and announced sanctions on firms linked to oil extraction "in Argentine territory under British occupation."
"There are winds of change in the world that are favourable to our claim," he said, alluding to Trump's threat to withdraw support for Britain's sovereignty.
Control of the Falklands is a highly emotive issue in Argentina, even though the islanders themselves voted overwhelmingly in 2013 to remain British.
"The Falklands are British because Falkland Islanders choose to be British," British Defence Secretary Wes Streeting responded in a social media post on Friday.
"Our commitment to the Falklands is absolute and unshakeable," Streeting added.
Iran war link
The Falklands War began in April 1982 when Argentine forces invaded the islands ruled by Britain since the 19th century, prompting then-British prime minister Margaret Thatcher to send a naval task force to reclaim them.
The conflict left 649 Argentines, 255 Britons and three islanders dead.
On Tuesday, Argentine Falklands War veterans and environmental lawyers filed a lawsuit to halt the oil project led by the British company Rockhopper and the Israeli company Navitas.
Rockhopper, which controls 35 percent of a major oil field off the Falklands with Navitas holding the rest, saw its share price fall around seven percent on Friday morning, as the companies insisted Milei's statement would not impact the project.
The partner firms said they were operating "with valid oil licences" and "with the full and ongoing support" of the British government.
Milei said the project violated a United Nations resolution calling on both sides to desist from unilateral actions in the islands.
"If we allow it, we will be creating an incentive for the British government to deepen the occupation of the islands and the exploitation of our resources," he said.
He added that companies involved in Falklands' projects "behind the back of the Argentine government" would be barred from operating in Argentine territory.
His address came as his approval ratings have plummeted, just over a year before he seeks re-election.
Polls show only around 34 percent of Argentines supporting his drastic belt-tightening and deregulation policies.
Trump's announcement Monday that the United States was reviewing its position on the Falkland Islands came amid reports Washington is threatening to oppose Britain's sovereignty in the region if it does not increase defence spending.
In an interview Thursday with the British network GB News, Trump criticised London's lack of military support for his war with Iran and refused to confirm whether he would back Britain in a potential new dispute with Argentina.
The last war in 1982 "was a long time ago," he said.
Britain on 'path of decline'
British foreign secretary Ed Miliband insisted the islanders' "right of self-determination is paramount, grounded in international law and we will resolutely uphold it".
However former British foreign office chief Simon McDonald told BBC Radio 4 the UK needed to reconsider the costs of administering a territory 8,000 miles (13,000 km) away.
"I think it is overdue that we have another fundamental look," said McDonald, acknowledging the archipelago's "iconic status" in the UK as a result of its victory in the war over 40 years ago.
"The Falklands issue serves Trump's purpose of pressuring the United Kingdom to comply with his demands regarding NATO funding and cooperation in the war in Iran," Tomas Mugica, director of the Center for International Studies at the Catholic University of Argentina, told reporters.
Milei presented Washington's review of its stance as a vindication of his policies and full-throated support for the Trump administration.
"The United States is considering this change of position because it knows that Argentina has a reliable partner," he said.
Britain, by contrast, is "on a path of decline" he said, alleging it faced "multiple migratory, demographic, and economic crises."
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© 2026 AFP
