Argentina suspends plan to move Israel embassy to Jerusalem: report

Argentina has reportedly suspended a high-profile plan to move its embassy in Israel to Jerusalem, a decision stemming from a diplomatic rift over a controversial oil project in a disputed territory. According to Israeli media, the government of President Javier Milei has put the embassy relocation on hold due to tensions arising from an Israeli company's involvement in offshore drilling near the Falkland Islands, which Argentina claims as the Islas Malvinas.

The Source of Tension: Oil Drilling in Disputed Waters

The suspension is linked to plans by Navitas Petroleum, an Israeli publicly-traded company, to begin a major offshore oil drilling project near the British-administered Falkland Islands in 2028. In December, Argentina sharply criticized the $2.1 billion joint venture between Navitas and UK-based Rockhopper Exploration, labeling it an "illegitimate" project that constituted a unilateral British action. Buenos Aires emphasized that the project lacked its approval, arguing it violated a 1976 UN resolution that prohibits unilateral actions by either Argentina or Britain while sovereignty negotiations over the islands remain ongoing.

Diplomatic Reassurances Fail to Mend Fences

Israeli Foreign Minister Gideon Saar has reportedly sought to reassure Argentine officials that the Israeli government has no control over Navitas, a private company, and is not involved in its operations. However, these diplomatic efforts have apparently failed to resolve the crisis. Sources cited by Israeli broadcaster Channel 12 indicate the dispute has "effectively halted" the embassy move and could potentially damage broader bilateral relations, despite Israel's Foreign Ministry previously describing Argentina under Milei as one of its "closest allies."

A Symbolic Setback for Israeli Diplomacy

The suspension represents a notable setback for Israel's foreign policy, which has actively encouraged nations to move their embassies to Jerusalem as a recognition of Israeli sovereignty over the contested city. President Milei, a vocal supporter of Israel, had first announced the move during a visit in February 2024 and reaffirmed in November that the new embassy would open this spring. Had Argentina proceeded, it would have become only the ninth country to maintain an embassy in Jerusalem, following the United States, Guatemala, and others. The halt underscores how third-party commercial interests can unexpectedly disrupt major geopolitical alignments.