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.