Argentina’s Libertarian Realignment Strengthens Israel and Counters Iran in Latin America

The Country Stands as an Unapologetic and Reliable Ally of the Jewish State on Both Moral and Strategic Grounds

Argentina's President Javier Milei in a June 2024 photo.

Argentina’s President Javier Milei in a June 2024 photo.

Shutterstock

In an era of moral equivocation and rising threats, Argentinian President Javier Milei stands as a bold defender of the State of Israel, the United States, and Western civilization.

A recent video captures the fire that defines Milei. Filmed in Jerusalem during his third visit to Israel, Milei reads from the epilogue of his book, Capitalism, the Divine Machinery of Prosperity. In it, he framed classic economic liberalism—the unrestricted respect for the life project of others, grounded in the principle of non-aggression and the rights to life, liberty, and property—as fully compatible with Judeo-Christian values rooted in the Torah.

Attacking Israel, he argued, constitutes an attack on the very foundations of Western civilization and capitalist prosperity. The core message was unambiguous: Argentina stands as an unapologetic ally of the Jewish State on both moral and strategic grounds.

Attacking Israel, [Milei] argued, constitutes an attack on the very foundations of Western civilization and capitalist prosperity.

These words rest on proven results at home. When Milei took office in December 2023, Argentina faced an annual inflation between 211 percent and 254 percent, a collapsing peso, and poverty rates already above 41 percent. His chainsaw austerity slashed public spending by 30 percent, deregulated markets, merged ministries, abolished agencies, reduced subsidies, and laid off 56,000 civil servants.

By the end of 2025, annual inflation had fallen to 31.5 percent. Monthly inflation reached five-year lows of 1.5 percent to 2.2 percent. Argentina recorded its first primary fiscal surplus in fourteen years at 1.8 percent of gross domestic product in 2024. The trade balance swung to a record $18.9 billion surplus in 2024.

The adjustment carried real short-term costs—compressed real wages and public-sector layoffs—yet the data now show a clear payoff. Poverty, which spiked temporarily to 52.9 percent in early 2024 during the adjustment, dropped sharply to 28.2 percent by the second half of 2025, the lowest level since 2018. Extreme poverty fell from 18.2 percent to 6.3 percent. Gross domestic product, after contracting in 2024, rebounded with 4.4 percent growth in 2025 and is projected to expand around 4 percent or higher in 2026, among the fastest rates in Latin America. The International Monetary Fund praised these gains and disbursed another $1 billion in fresh funds this month.

These numbers flow directly from Milei’s rejection of central planning and his emphasis on sound money, private property, and entrepreneurial discovery drawn from the highly Jewish-influenced “Austrian School of Economics.” Argentina proves that Milei’s “divine machinery” (as he calls it) works. Now Milei exports that vision geopolitically.

On April 19, 2026, in Jerusalem, he and Israeli Prime Minister Benjamin Netanyahu formally launched the Isaac Accords. Milei conceived of the initiative last year and modeled it explicitly on President Donald Trump’s Abraham Accords. The initiative unites Israel with Argentina and like-minded Latin American nations on shared Judeo-Christian values, democracy, and the fight against terrorism, antisemitism, and drug trafficking, especially Iran’s expanding networks in the Western Hemisphere. Ecuador and Paraguay will likely join.

On April 19, 2026, in Jerusalem, [Milei] and Israeli Prime Minister Benjamin Netanyahu formally launched the Isaac Accords.

Concrete achievements followed. Direct El Al flights between Tel Aviv and Buenos Aires will launch by year-end. Argentina will move its embassy to Jerusalem. Memorandums of understanding cover security cooperation and artificial intelligence. Milei received the Presidential Medal of Honor and lit a torch at Israel’s seventy-eighth Independence Day ceremony.

The Isaac Accords represent the most significant Latin American realignment toward Israel and the Western democratic bloc since the Abraham Accords. They directly counter Tehran’s efforts to build terrorist infrastructure across the hemisphere through Hezbollah.

American and Israeli law enforcement assessments show Hezbollah-linked networks in the Tri-Border Area and beyond generate between $10 million and $200 million annually from drug trafficking, money laundering, arms smuggling, and extortion in partnership with local cartels. These operations fund Iranian proxies and pose direct threats to U.S. security and stability throughout the hemisphere.

The accords also blunt Chinese and Russian influence in South America, where Beijing’s economic leverage and Moscow’s diplomatic overtures have grown unchecked for years. Indeed, they forge a new axis of innovation and prosperity anchored in the pro-Western alliance led by the United States.

The Abraham Accords provide a clear precedent: Trade between Israel and its partners surged in the years following normalization. Similar gains await Argentina and its partners through security pacts, artificial intelligence collaboration, and open markets.

The deepened Argentina-Israel partnership creates space for creative diplomatic solutions.

By linking economic freedom to Judeo-Christian moral foundations, Milei shows capitalism as the natural outgrowth of the values that built America, Israel, and the free world—elevating libertarian principles from domestic theory to reshape global alliances in defense of Israel, the hemisphere, and the West.

From a policy perspective, it is striking to witness Argentina’s transformation—from its historical role supplying heavy water technology that once aided Iran’s nuclear program to becoming one of Israel’s most reliable partners in Latin America.

With Israeli energy firms actively advancing oil and gas activities in the Falklands, the deepened Argentina-Israel partnership creates space for creative diplomatic solutions. Policymakers in Buenos Aires and Jerusalem should explore joint development models or innovative co-sovereignty arrangements on the islands—drawing inspiration from Spain’s long-discussed proposals regarding Gibraltar—turning a traditional point of tension into an opportunity for shared prosperity, energy collaboration, and deeper strategic alignment.

Jose Lev is an American–Israeli scholar specializing in Middle Eastern security doctrine and regional strategy. A multilingual veteran of the Israel Defense Forces and the U.S. Army, he holds three master’s degrees and is completing a Ph.D. in Intelligence and Global Security in the Washington, D.C., area.
See more from this Author
Jerusalem Sees Belgrade as Its Most Dependable Partner Among the Former Yugoslav Republics
Clearly, Spain Is Drifting Away from the Atlantic Camp and Toward the Moral Vanity of the Anti-Western Left
Iran Is Turning the Continent Into a Lucrative Market and a Potential Forward Assembly Zone for Its Asymmetric Arsenal
See more on this Topic
Iranian Authorities Continue to Project Defiance but the Economy Appears to Have Limited Remaining Resilience
Jerusalem Sees Belgrade as Its Most Dependable Partner Among the Former Yugoslav Republics
The Strait’s Closure Disrupts the Flow of More than 20 Percent of the World’s Oil and Gas Supplies