Argentina to see ‘trade improvement’ from Middle East war, Milei says

President Javier Milei suggested Monday that the war in the Middle East will generate “an improvement” in Argentina’s oil and agricultural exports, potentially helping the country accumulate foreign currency reserves.

Israeli and US attacks on Iran launched 10 days ago and Tehran’s retaliation against several countries on the Arabian Peninsula have driven up oil prices. On Monday, crude surpassed US$100 per barrel for the first time since 2022.

“In this context, Argentina will see an improvement in its terms of trade because oil is rising and Argentina is a net exporter,” Milei told Argentine radio station FM NOW.

“All the grains Argentina exports are also rising: soy, maize and sunflower,” the President added from New York, where he is taking part in Argentina Week, a roadshow aimed at promoting investment.

Milei has voiced support for the offensive launched on February 28 by the United States and Israel, two of his government’s main allies.

The head of state was among a dozen leaders from Latin America and the Caribbean aligned with US President Donald Trump who attended the Shield of the Americas summit on Saturday, a continental security agreement promoted by Washington.

In the interview with FM NOW, Milei said the current context offers a favourable opportunity to build up international reserves – a commitment Argentina made to the International Monetary Fund (IMF) under the US$20-billion agreement signed in April 2025.

Argentina has become a net exporter of oil in recent years, largely thanks to the Vaca Muerta gas fields in the southwest, the world’s second-largest reserve of unconventional gas and fourth-largest reserve of shale oil.

The oil and gas sector accounts for 13.5 percent of Argentina’s exports, making it the second-largest export category, though still far behind the agricultural sector, which represents more than 60 percent.

Soybeans alone account for 24.6 percent of total exports, while wheat represents 4.2 percent.

Last week, the Chicago grain market closed higher: wheat reached its highest level in a year and soybeans hit their highest price since June 2024, according to Argentina’s Economy Ministry.

 – TIMES/AFP