Falklands oil risk spikes: Argentina’s President Javier Milei escalated the dispute by threatening sanctions on companies involved in offshore drilling near the Falklands, singling out the Sea Lion project (Rockhopper with Navitas) and warning firms could be barred from operating in Argentina; the UK hit back with Wes Streeting saying the islands are “British because Falkland Islanders choose to be British” and that the commitment is “absolute and unshakeable.” Sovereignty rhetoric heats up: Milei framed the islands as “historically and legally” Argentine and vowed to “recover” them, while Britain’s Ed Miliband said it will “resolutely uphold” self-determination after Milei claimed “winds of change” tied to US President Donald Trump’s hints Washington may review its stance. Regional diplomacy: Chile’s President José Antonio Kast reiterated support for Argentina’s sovereignty rights after talks with Milei, while also backing a return to negotiations and confirming Chile’s sovereignty over the Strait of Magellan. Local business angle: The immediate market reaction was sharp—Rockhopper shares fell more than 10% in London as investors priced in the sanctions threat. Aviation and supply chain: Britten-Norman completed the first flight of the first UK-assembled Islander aircraft from detail component level, a potential boost for UK-built aviation capacity relevant to island operators.