British Prime Minister Andy Burnham told US President Donald Trump in a Friday phone call that Argentina's new sanctions law threatens economic interests on both sides of the Atlantic, centring on the Sea Lion oil project north of the Falkland Islands. Buenos Aires says the law defends its sovereignty claim and will not be withdrawn. British Prime Minister Andy Burnham raised concerns directly with US President Donald Trump during a Friday phone call, warning that Argentina's new National Sovereignty Defence law could carry economic consequences for both the United Kingdom and the United States.

According to a Downing Street statement, the call focused on the Sea Lion oil project north of the Falkland Islands and on the islanders' right to develop their own natural resources. The Argentine law toughens sanctions against companies involved in hydrocarbon exploration near the Falklands, a measure Buenos Aires frames as defending its long-standing sovereignty claim over the islands. Earlier in the week, a senior US State Department official acknowledged in Buenos Aires that Washington is watching closely how the law could affect American firms with interests in the area, while Argentina's foreign minister defended the legislation as a legitimate policy tool.

The dispute adds a new layer of tension to a relationship already strained by Argentina's sovereignty push, even as Trump has previously signalled he would not abandon Britain's position on the islands. Energy companies with stakes in Falklands-area exploration are watching for any formal response from Washington or London, since further sanctions or counter-measures could delay drilling schedules and affect project financing.