A diplomatic storm is brewing between Israel and Argentina over the Iran-linked bombings of the Jewish community centre and the Israeli embassy in Buenos Aires over 15 years ago.

Newspapers in Argentina recently reported on an agreement between the government of Cristina Kirchner and the regime in Tehran that the Argentine judiciary will discontinue its investigation into the bombing of the Israeli embassy in 1992 in which 29 people were killed, and the bombing of the AMIA community building in 1994, in which 85 died.

The attacks have been linked to Iranian agents and are believed to have been carried out in retaliation to the killing of Hizbollah leader Abbas Mussawi by Israel in Lebanon in 1992.

Despite the time that has elapsed, the investigations have not yet been concluded.

According to reports in the Argentinian media, the Kirchner government is anxious to improve its ties to the Arab and Muslim world and is hoping to link the end of the investigations to an upgrade of its relations with Iran. Sources in Jerusalem said that if the reports are true, the visit to Israel next week of Argentine Foreign Minister Hector Timmerman may be cancelled.