Argentina's President Javier Milei has sharpened his language on the Falkland Islands in recent days, arguing that his country is making more progress on its long-standing sovereignty claim than at any point in the past, as reports in Washington suggest the Pentagon has proposed a review of the United States' historic neutrality on the disputed South Atlantic territory.

Milei, a close ally of US President Donald Trump, told a streaming platform last week that Argentina was "making progress like never before" on the Falklands, known in Argentina as Las Malvinas. The remarks mark a firmer tone from a president who had previously drawn criticism at home for taking a softer line on sovereignty, favouring negotiation with London over confrontation.

The renewed focus on the islands comes at a moment of strain between Washington and London. Reports have suggested that the Pentagon has prepared a memorandum setting out options for the US president to penalise allies seen as unhelpful during the war on Iran, including a review of the American position on the Falklands. The US has traditionally avoided taking a position on sovereignty over the islands while acknowledging that they are under British administration.

What the Pentagon review would mean

The suggestion of a change in the American stance has been treated in London as pressure rather than policy. US Secretary of State Marco Rubio has tried to play down the idea that Washington might alter its position, and the State Department has restated that its position on the islands remains one of neutrality, acknowledging competing claims of sovereignty.

President Trump himself has kept the question open. Asked whether the US position on the Falklands was under review, he said: "I always review every position. That's just one of many." In an interview broadcast in September, he declined to say directly whether the United States would come to Britain's aid if Argentina pressed its claim, and instead returned to his complaint that Britain had not supported American action against Iran.

For Milei, the ambiguity in Washington is an opportunity. In a national address in September, he restated Argentina's claim to the islands and set out four actions, including beginning proceedings in international courts if activity at the Sea Lion oil field, north of the Falklands, does not stop. Initial proceedings on Argentina's request for provisional measures before the International Tribunal for the Law of the Sea were held on 10 and 11 November.

Oil, sanctions and the Sea Lion field

The Sea Lion field has become the sharp end of the dispute. Rockhopper Exploration and Navitas Petroleum took a final investment decision on the project in December 2025, covering 319 million barrels of certified resources, with peak output of around 50,000 barrels a day. Milei has warned that Argentina will place economic pressure on the project, including sanctions on oil companies operating in the area, and has described the islands as Argentine "by history and by right".

The British government has said its position is long-standing and unwavering, and that the islands are and will remain a British Overseas Territory in line with the wishes of the islanders. The UK has said it will contest Argentina's legal case and is introducing protections for businesses engaged in the Falklands. In the 2013 referendum, 99.8 per cent of islanders voted to remain British, on a turnout of 92 per cent.

Milei under pressure at home

Milei's tougher line on the Falklands also comes as his domestic standing weakens. According to the Americas Society/Council of the Americas approval tracker, 61 per cent of Argentines disapprove of the president, his lowest rating since he took office in December 2023, as the cost of living remains punishingly high and the economy heads towards recession.

Trump has previously described Milei as his "favourite president", and the two leaders have met several times. In the run-up to key legislative elections in Argentina in 2025, the Trump administration extended a 20 billion dollar currency swap facility to help stabilise the peso.

Whether the Pentagon's reported proposal becomes policy remains uncertain. For now, nothing has changed on paper: the United States has never formally recognised British sovereignty over the islands, and its stated position remains neutrality. But the episode has given Milei a fresh opening to press a claim that has defined Argentine politics for generations, and it has left London watching Washington closely. Read the House of Commons Library briefing on UK-Argentina tensions over the Falklands and Al Jazeera's report on Milei's Falklands claim.