Iranian Drones Disrupt Relations between Bolivia, Argentina

Bolivian Defense Minister Edmundo Novillo and his Iranian counterpart, Mohammad-Reza Ashtiani, signed an agreement in Tehran last week (Tasnim)
Bolivian Defense Minister Edmundo Novillo and his Iranian counterpart, Mohammad-Reza Ashtiani, signed an agreement in Tehran last week (Tasnim)
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Iranian Drones Disrupt Relations between Bolivia, Argentina

Bolivian Defense Minister Edmundo Novillo and his Iranian counterpart, Mohammad-Reza Ashtiani, signed an agreement in Tehran last week (Tasnim)
Bolivian Defense Minister Edmundo Novillo and his Iranian counterpart, Mohammad-Reza Ashtiani, signed an agreement in Tehran last week (Tasnim)

An Iranian deal to supply Bolivia with drones threatens its relationship with Argentina, which demanded explanations on the agreement concluded last week, and raised security concerns in the region.

Bolivian Defense Minister Edmundo Novillo confirmed his country's interest in obtaining Iranian drone technology to protect its borders and combat smuggling and drug trafficking.

The minister spoke to the press a day after Argentina's foreign ministry sent a note to the Bolivian embassy in Buenos Aires requesting information "about the scope of the discussions and possible agreements reached" during Novillo's visit to Iran last week.

Bolivian opposition lawmakers also requested information after they found out through the media about an alleged defense and security memorandum of understanding (MoU) signed between Novillo and his Iranian counterpart, Mohammad Reza Ashtiani, on July 20.

The Associated Press (AP) reported that Novillo dismissed those concerns, saying they were "exaggerated" and came from an Argentine lawmaker "who, I understand, has Israeli origins," whom he did not name.

The minister characterized concerns as an "exaggeration" and a "political show," speculating that it had to do with the upcoming elections in Argentina and that some sectors of the country's right-wing are trying to use the issue for political purposes.

Argentina will hold primary elections next month ahead of the presidential elections in October.

Argentina's foreign ministry declined to comment on Novillo's news conference.

The Bolivian minister also denied that an MoU had been signed with Iran, saying that he signed an "act" with his counterpart in Tehran to identify common points of interest.

Iran's state-run news agency IRNA had reported on the memorandum of understanding. Neither country has made the document public.

The Iranian minister said Latin American countries are particularly significant in Iran's foreign and defense policy based on the importance of the susceptible South American region.

In response to the Argentine memorandum, Novillo said Bolivia was interested in Iranian high-tech drones that can monitor mountainous areas and provide real-time images to the armed forces, stating that their technology could help the Andean country's efforts to boost border security.

He did not say whether Bolivia would purchase the drones or if they would be a donation, but the Institute for the Study of War (ISW), based in Washington, said last week that "Iran has sought to increase the number of countries that buy Iranian drones in recent years."

Bolivian opposition lawmaker Gustavo Aliaga told AP that the defense minister must clarify and explain the agreement and the reason for signing it with a country that has complications on the international scene when Bolivia should be peaceful according to its constitution.

Aliaga, the Defense and Armed Forces Committee secretary in the Chamber of Deputies, said: "All I know is what the press publishes."

- Disagreement in the Bolivian parliament

"They say that (Iran) will give us drones. Others say they will give us missiles. All of this sounds strange, even more so considering it involves Iran," said the Bolivian opposition lawmaker.

"I can't understand why Bolivia is getting involved in such a complex and difficult relationship."

Meanwhile, Senator Leonardo Loza, aligned with the ruling Movement Toward Socialism party, praised the agreement.

Loza, secretary of the Senate's Security Committee, asserted his country's right to sign these agreements.

"The United States is the most dangerous country, and Bolivia has the right to sign agreements with other nations."

Venezuela had previously said it was building drones with Iran's help, according to Annika Ganzeveld, an Iran analyst for the Critical Threats Project at the American Enterprise Institute, an ISW partner organization.

The Bolivian-Iranian agreement came about two months after Iranian President Ebrahim Raisi's tour to South America, which included Venezuela, Nicaragua, and Cuba.

"President Ebrahim Raisi has shown a greater interest in developing relations with South American countries than his predecessor," Ganzeveld said.

"Iran's renewed focus on Latin America indicates it is trying to increase its foothold in this region, especially by bolstering economic interactions and possibly pursuing arms deals."

- Ghost of AMIA bombing

The agreement raised particular concern in Argentina, where prosecutors have long alleged that Iranian officials used the Lebanon-based militant group Hezbollah to carry out the 1994 bombing of the AMIA Jewish community center in Buenos Aires that killed 85 people.

Iran has denied any involvement in the incident.

Bolivia and Iran had a close relationship during the government of President Evo Morales (2006-2019), with then-Iranian President Mahmoud Ahmadinejad visiting Bolivia three times.

The alignment caused diplomatic spats with Argentina, most notably in 2011 when Bolivia expelled then-Iranian Defense Minister Ahmad Vahidi at the urging of Buenos Aires.

Argentine prosecutors consider Vahidi one of the masterminds behind the AMIA attack.



US Imposes Fresh Sanctions on Iranian Exchange House, Shadow Fleet Vessels

US Secretary of Treasury Scott Bessent poses for a family photograph of G7 Finance Ministers and Central Bank Governors as they meet to prepare the summit of heads of State and government to be held in June 2026 in Evian, in Paris on May 19, 2026. (AFP)
US Secretary of Treasury Scott Bessent poses for a family photograph of G7 Finance Ministers and Central Bank Governors as they meet to prepare the summit of heads of State and government to be held in June 2026 in Evian, in Paris on May 19, 2026. (AFP)
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US Imposes Fresh Sanctions on Iranian Exchange House, Shadow Fleet Vessels

US Secretary of Treasury Scott Bessent poses for a family photograph of G7 Finance Ministers and Central Bank Governors as they meet to prepare the summit of heads of State and government to be held in June 2026 in Evian, in Paris on May 19, 2026. (AFP)
US Secretary of Treasury Scott Bessent poses for a family photograph of G7 Finance Ministers and Central Bank Governors as they meet to prepare the summit of heads of State and government to be held in June 2026 in Evian, in Paris on May 19, 2026. (AFP)

The Trump administration on Tuesday imposed sanctions on an Iranian foreign currency exchange house and what it said were front companies overseeing transactions on behalf of Iranian banks as the US maintains pressure on Tehran.

The move came after Iran said its latest peace proposal to the United States over the US-Israeli led war that started February 28 involves ending hostilities on all fronts including Lebanon, the exit of US forces ‌from areas close ‌to Iran, and reparations for destruction caused by ‌the ⁠conflict.

The Treasury Department ⁠imposed sanctions on the Iran-based Amin Exchange, also known as Ebrahimi and Associates Partnership Company, which it said has a widespread network of front companies spanning multiple jurisdictions, including in Türkiye and Hong Kong.

The US also blocked 19 vessels it said were involved in shipping Iranian petroleum and petrochemicals to foreign customers.

The Treasury ⁠Department said Iranian exchange houses facilitate billions of dollars ‌in foreign currency transactions a year, ‌enabling the government to evade sanctions and access the international financial system. It ‌said the front companies oversee hundreds of millions of dollars ‌in transactions on behalf of Iranian banks.

"Iran’s shadow banking system facilitates the illicit transfer of funding for terrorist purposes," Treasury Secretary Scott Bessent said in a release. "As Treasury systematically dismantles Tehran’s shadow banking system and shadow fleet under Economic ‌Fury, financial institutions must be alert to how the regime manipulates the international financial system to ⁠wreak havoc."

The sanctions block US assets of those designated and prevent Americans from doing business with them.

The US also designated vessels for transporting Iranian-origin oil, petroleum products and petrochemicals including the Barbados flagged liquefied petroleum gas tanker Great Sail, the Palau-flagged products tanker Ocean Wave, and the Panama-flagged chemical/oil tanker Swift Falcon.


Israel Finance Minister Says ICC Seeks Arrest Warrant Against Him

Israeli Finance Minister Bezalel Smotrich speaks at a press conference regarding settlements expansion for the long-frozen E1 settlement, that would split East Jerusalem from the occupied West Bank, near the Israeli settlement of Maale Adumim in the Israeli-occupied West Bank, August 14, 2025. (Reuters)
Israeli Finance Minister Bezalel Smotrich speaks at a press conference regarding settlements expansion for the long-frozen E1 settlement, that would split East Jerusalem from the occupied West Bank, near the Israeli settlement of Maale Adumim in the Israeli-occupied West Bank, August 14, 2025. (Reuters)
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Israel Finance Minister Says ICC Seeks Arrest Warrant Against Him

Israeli Finance Minister Bezalel Smotrich speaks at a press conference regarding settlements expansion for the long-frozen E1 settlement, that would split East Jerusalem from the occupied West Bank, near the Israeli settlement of Maale Adumim in the Israeli-occupied West Bank, August 14, 2025. (Reuters)
Israeli Finance Minister Bezalel Smotrich speaks at a press conference regarding settlements expansion for the long-frozen E1 settlement, that would split East Jerusalem from the occupied West Bank, near the Israeli settlement of Maale Adumim in the Israeli-occupied West Bank, August 14, 2025. (Reuters)

Israel's far-right finance minister Bezalel Smotrich said Tuesday that the International Criminal Court prosecutor has requested an arrest warrant against him, accusing the Palestinian Authority of pushing for the move.

Smotrich said he would retaliate by ordering the evacuation of the Palestinian Bedouin community of Khan al-Ahmar in the occupied West Bank.

"Last night I was informed that the criminal prosecutor of the antisemitic court in The Hague has filed a request for an international arrest warrant against me," Smotrich told a news conference broadcast on his X account Monday.

"As a sovereign and independent state, we do not accept hypocritical dictates from biased bodies that time and again take a stand against the State of Israel," he added, without disclosing the charges for which the warrant has been requested.

The ICC prosecutor's office said it was "unable to comment on media speculation or questions related to any alleged application for a warrant of arrest".

In November 2024, the ICC issued arrest warrants for Israeli Prime Minister Benjamin Netanyahu and former defense minister Yoav Gallant, to face accusations of war crimes and crimes against humanity over Israel's actions during its war against Hamas in Gaza.

- 'Declaration of war' -

"Immediately upon the conclusion of my remarks here, we will sign an order to evacuate Khan al-Ahmar," Smotrich said, calling the warrant request "a declaration of war".

More than 750 people live in the community of Khan al-Ahmar, around 10 kilometers east of Jerusalem's Old City in the central West Bank and surrounded by Israeli settlements.

The Palestinian Authority's Settlement and Wall Resistance Commission urged the international community to stop the move.

"Targeting Khan al-Ahmar is part of a long-term strategic settlement project... through which Israel seeks to create complete settlement contiguity that would separate the northern West Bank from its south," the commission's minister, Muayad Shaaban, was quoted as saying.

Peace Now, an Israeli settlement watchdog, also denounced the move.

"The Minister of Expulsion and Annexation seeks to take revenge on The Hague and the international community at the expense of one of the most vulnerable communities," it said.

Khan al-Ahmar sits near land Israel plans to use for its controversial E1 development project that would facilitate settlement expansion in the area near Jerusalem.

Smotrich, who lives in a settlement himself, is a staunch proponent of Israel annexing the West Bank.

"Under this government, we see that for the first time they've approved the very sensitive and significant plan of E1, and they're going ahead with plans to annex that entire region," Lior Amihai, Peace Now's executive director, told AFP.

"In order for them to annex the entire region, they need to also expel the Palestinian communities from there and Khan al-Ahmar is one of them," he added.


EU Denounces New US Waiver of Russian Oil Sanctions

European Commissioner for Economy and Productivity, Valdis Dombrovskis, looks on ahead of a G7 finance ministers and central bank governors meeting in Paris, France, May 18, 2026. (Reuters)
European Commissioner for Economy and Productivity, Valdis Dombrovskis, looks on ahead of a G7 finance ministers and central bank governors meeting in Paris, France, May 18, 2026. (Reuters)
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EU Denounces New US Waiver of Russian Oil Sanctions

European Commissioner for Economy and Productivity, Valdis Dombrovskis, looks on ahead of a G7 finance ministers and central bank governors meeting in Paris, France, May 18, 2026. (Reuters)
European Commissioner for Economy and Productivity, Valdis Dombrovskis, looks on ahead of a G7 finance ministers and central bank governors meeting in Paris, France, May 18, 2026. (Reuters)

The European Union criticized Tuesday the latest US waiver of sanctions on Russian oil, announced while G7 finance ministers were meeting to reach a common response to multiple economic challenges.

Washington's move aims to help lower energy prices that have skyrocketed since the US and Israel launched attacks on Iran in February, effectively shutting the Strait of Hormuz to Gulf oil tanker traffic.

But EU economics commissioner Valdis Dombrovskis denounced the extensions, which have given Moscow a financial boost as it pursues its war against Ukraine.

"From the EU point of view, we do not think that this is a time to ease pressure on Russia," Dombrovskis told journalists while arriving for a second day of G7 talks in Paris.

"In fact, Russia is the one which is gaining from the war in Iran and the increase in fossil fuel prices," he said. "If anything, we would need to strengthen the pressure."

US Treasury Secretary Scott Bessent is in Paris for the Group of Seven talks hosted by France, which currently chairs the group's rotating presidency.

"Secretary Bessent was reassuring us that this is a temporary measure, but we know that it's already a second extension of the measure which initially was meant to last only 30 days," Dombrovskis said.

French Finance Minister Roland Lescure said a joint statement would nonetheless be made following talks that are to wind up Tuesday.

"We've had extremely frank discussions between people who do not necessarily agree on everything, but who are able to talk about everything," he told journalists.

The talks aim to keep dialogue open as trade feuds spurred by US President Donald Trump's tariff blitz compound geopolitical tensions.