Key insights
- A Pentagon memo considers punishing NATO allies, including potentially suspending Spain, for lack of support in the Iran conflict. This highlights transatlantic tensions and raises concerns about the stability of the NATO alliance. While a ceasefire is in place, continued geopolitical uncertainty could weigh on market sentiment and risk appetite.
Investing.com-- An internal Pentagon email outlines options for the U.S. to punish NATO allies it believes failed to support the country’s war with Iran, including suspending Spain from the organization, Reuters reported on Friday.
Other measures also include reviewing U.S. positions on Britain’s claim to the Falkland Islands, Reuters reported, citing comments from a U.S. official.
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The policy options were outlined in an internal mail expressing frustration at some U.S. allies over their perceived reluctance or refusal to grant Washington access to access, basing, and overflight rights– known at ABO– for the Iran war.
One option in the mail proposed suspending “difficult” countries from top positions at NATO, Reuters reported.
U.S. President Donald Trump had lambasted NATO allies for not assisting the U.S. in sending their navies to reopen the Strait of Hormuz, which was closed by Iran in late-February in response to U.S. and Israeli hostilities.
Trump had also repeatedly floated the idea of withdrawing from the alliance.
Spain was among the biggest opponents to the Iran war, having closed its airspace and denied the use of its military bases for operations.
Defence Minister Margarita Robles had called the war “profoundly illegal and unjust,” while Prime Minister Pedro Sanchez had also maintained his stance against the conflict despite tariff threats from Trump.
Trump announced an indefinite ceasefire with Iran earlier this week, after attempts at peace talks largely fell through. Tensions between the two countries showed few signs of cooling, with Tehran continuing to block the Strait of Hormuz, while Washington maintained its naval blockade of the country.