Diplomatic tensions are increasing in Latin America between Argentina and Venezuela, two of the continent's powerhouses and formerly close allies.

The spat relates to the seizure of a Venezuelan plane with alleged ties to Iran in Argentina. It has been met with a strong rebuttal from Caracas, which has now closed its airspace to Argentine aircraft.

Local reports have called the incident a "reprisal" that comes after Buenos Aires handed over the seized cargo plane to the US.

Shortly after the seizure by US authorities, Venezuelan President Nicolas Maduro hit out at Argentina's leader, Javier Milei who assumed the presidency in December, as the country pivoted to the far-right.

"Milei the bandit stole the plane from Venezuela. Javier Milei, the hero of the extreme right," said Maduro.

Geopolitics

Local reports describe the incident as underscoring the intricacies of global politics and the aviation industry's susceptibility to geopolitical rifts.

On Wednesday, the diplomatic spat increased as Buenos Aires sharpened its rhetoric towards its counterpart in Caracas, calling them "madmen."

Manuel Adorni, spokesperson for the Argentine presidency, who has been in the role since Milei assumed the presidency, publicly hit out at Caracas.

"From a government of dictators, the only thing that can be expected are affairs that do not even deserve a response. It saddens us for the Venezuelan people that they have been governed by these madmen for a long time," he said

Adorni's remarks appeared to signal a departure from the cordial ties between the respective Latin American governments.

In the early 2000s amid the so-called "pink tide" era, as many Latin American nations pivoted to the left, the Chavez and Kirchner governments both nations enjoyed close ties and strong alignment.

Trading barbs

However, since Milei assumed office both governments have exchanged barbs.

Following the seizure of the plane, Venezuela strongly denounced Milei's government as it clarified its position.

"The neo-Nazi government of Argentina is submissive and obedient to its imperial master," wrote Foreign Minister Yvan Gil had taken to X, formerly Twitter.

The diplomatic incident re-ignited after Nicolas Maduro's government banned Argentine aircraft from entering Venezuela's airspace on Tuesday.

"Venezuela exercises full sovereignty in its airspace and reiterates that no aircraft coming from or heading to Argentina will be able to fly over our territory," said Gil.

The US footprint in Latin America

In 2019, the US Department of Treasury placed the Iranian airline Mahan Air on its sanction list, alleging it held ties to the Iranian armed forces.

The air ban was in response to the eventual US seizure of a Venezuelan-Iranian aircraft that had been grounded in Argentina since August 12, 2022, after carrying auto parts for Volkswagen.

In the aftermath, US authorities had pushed to seize the plan in question which was denounced by Caracas and Tehran until an Argentine federal judge, Federico Villena, ordered it to be handed to US authorities.

The US claims the sale of the aircraft to Venezuela by Iran's Mahan Air allegedly violated its sanctions against Tehran.

Washington peddled the narrative that the plane was purportedly used for covert operations by Venezuelan and Iranian agents in Latin America - a charge vehemently denied by Caracas.

Compensation push

Venezuela has argued that Argentina has violated protocols relating to the International Civil Aviation Organization (ICAO) by allowing the aircraft to head to the US.

Authorities in Caracas insist the ban will remain in place until the company is "compensated" over what it said is the "damage caused, after the illegal actions were carried out to please its guardians in the north."

Argentina’s spokesman, Adorni, underscored that the Venezuelan flight ban on Argentine aircraft from entering Venezuelan airspace carries a "high" financial burden to the airlines.

He added that it will impact the passenger's pockets, as they bear the cost amid the continued diplomatic spat.

Adorni went on to say Argentina had initiated "diplomatic proceedings" against Venezuela, although he did not provide further details or qualify his remarks.

Venezuela's flight ban came after the parliament in Caracas ratified the ban, which has a pro-government majority.