Falkland Islands (Islas Malvinas)
Uninhabited until 1764; Britain took control in 1833; Argentina invaded in 1982 (907 dead, 74 days); 99.8% voted British in 2013; now oil development begins despite Argentine opposition.
The Falkland Islands exist in diplomatic limbo—a British Overseas Territory that Argentina claims as the Islas Malvinas, where 3,500 people live atop potential oil reserves worth billions while two nations maintain irreconcilable positions on sovereignty. The 1982 war killed 907 people over 74 days; the underlying dispute remains unresolved 43 years later.
The archipelago was uninhabited when Europeans arrived. English navigator John Davis may have sighted the islands in 1592; Dutch captain Sebald de Weerdt made the first undisputed sighting around 1600. The first recorded landing came in 1690 when English captain John Strong named the sound between the main islands after Viscount Falkland. But France established the first settlement in 1764 on East Falkland; Spain purchased this colony in 1767 and administered it until withdrawing in 1811. Britain had briefly settled West Falkland (1766-1774) before Spain forced their departure. When the newly independent United Provinces of the Río de la Plata (Argentina) attempted to establish sovereignty in the 1820s-30s, Britain expelled them in 1833 and has maintained continuous control since—the foundation of the British legal claim.
Argentina's claim rests on inheritance from Spain and geographic proximity. Britain argues 190 years of continuous administration and the right of self-determination for the islands' population. These positions are mutually exclusive; no compromise formula has ever satisfied both parties.
The 1982 war emerged from Argentine domestic crisis. The military junta, facing economic collapse and human rights condemnation, believed seizing the islands would unite the nation in patriotic fervor. Admiral Jorge Anaya architected the April 2 invasion; within days Argentine forces controlled the archipelago. But Prime Minister Margaret Thatcher dispatched a naval task force 8,000 miles to retake them. After 74 days of combat—including the sinking of the cruiser General Belgrano (323 dead) and the destroyer HMS Sheffield—Argentina surrendered on June 14. The war killed 649 Argentine personnel, 255 British personnel, and three islanders. Argentina's junta collapsed; Thatcher's government was transformed.
Post-war Britain expanded its military presence dramatically, building RAF Mount Pleasant with a permanent garrison. The war left 117 minefields containing 20,000 mines; clearance continued for decades. In a 2013 referendum, 99.8% of Falkland Islanders voted to remain a British Overseas Territory—exercising the self-determination principle that Britain emphasizes and Argentina rejects as irrelevant to the sovereignty question.
The economy transformed through the diversification Lord Shackleton recommended after the war. Fishing licenses generate significant revenue; tourism brings cruise ships and wildlife enthusiasts to see penguin colonies and battlefields. But the prize is offshore oil. In December 2025, Rockhopper Exploration and Navitas Petroleum took final investment decisions for the Sea Lion Field—Phase 1 targeting 170 million barrels at 50,000 barrels per day peak production, with first oil planned for 2028. Argentina immediately rejected the development, promising to "deepen its action plan" to protect its claimed sovereign rights.
Through 2026, the Falklands demonstrate how territorial disputes freeze in place when neither party will compromise. The islanders are British by choice; Argentina considers their presence an implanted population. Oil development will test whether economic stakes can either force negotiation or escalate confrontation. The sheep farms that once defined the islands may give way to offshore platforms—but the sovereignty question will remain exactly where it was in 1833.