Washington is weighing punitive measures against NATO partners it views as unwilling to support operations in the Iran war, according to an internal Pentagon policy email.

The memo, circulating at senior Pentagon levels, frames access, basing and overflight rights as “just the absolute baseline for NATO,” according to a U.S. official who talked to Reuters for its exclusive. It proposes suspending “difficult” countries from key alliance roles, with Spain specifically identified due to its refusal to allow bases or airspace to be used for strikes on Iran.

Spain hosts two major U.S. installations – Naval Station Rota and Morón Air Base – making its stance operationally relevant even if suspension would be largely symbolic in military terms.

One option includes suspending Spain from NATO structures, while another suggests reassessing U.S. diplomatic support for British control of the Falkland Islands, a dispute dating back to the 1982 war in which 650 Argentine and 255 British personnel were killed.

The measures aim to reduce what officials describe as a European “sense of entitlement,” signaling frustration with allies that declined to support U.S. naval operations to reopen the Strait of Hormuz after the war began on Feb. 28.

Pentagon Press Secretary Kingsley Wilson said allies “were not there for us,” adding the department would ensure options to make partners “do their part.”

President Donald Trump has echoed this view, asking, “Wouldn’t you if you were me?” when discussing potential U.S. withdrawal from NATO.

He also criticized Spain directly, saying, “Their financial numbers… are absolutely horrendous,” accusing them of contributing little to NATO defense.

Spain’s Prime Minister Pedro Sánchez rejected the report, stating governments “do not work off emails.”

In parallel, Spain has continued its anti-war stance. They have pushed to suspend the EU-Israel agreement, citing alleged breaches of international law, though Euronews said the effort lacks consensus, with Germany and Italy opposing it.

Meanwhile president Sánchez, speaking in China, said Europe should “strengthen ties with China,” reflecting broader strategic divergence within the alliance.

The dispute comes as NATO, now 76 years old, faces questions about cohesion. U.S. Defense Secretary Pete Hegseth complained Nato wouldn’t be much of an alliance if members hesitate to act, noting Iran’s missiles can reach Europe even if not the United States.

The Iran war, now in its eighth week, has exposed divisions over risk-sharing, military access, and the scope of alliance obligations, with policy options under review but no formal decisions announced.

The Trump administration’s proposed $1.5 trillion defense budget reflects the escalating financial demands of the Iran war while intensifying political and fiscal tensions in Washington.

The White House’s 2027 proposal seeks a more than 40 percent increase in defense spending, the sharpest rise since World War II.

U.S. media cited closed-door briefings estimating the Iran war may be costing up to $2 billion per day as the conflict enters its fifth week.

The plan allocates over $1.1 trillion through standard appropriations, with an additional $350 billion via a party-line mechanism.

Recent losses underline the scale of military strain. According to EGYOSINT, U.S. assets hit include 4 F-15E Strike Eagles, 1 A-10 shot down, and 17 MQ-9 Reaper drones destroyed.

Other reported losses include 1 E-3G Sentry (Airborne Early Warning and Control – AEW&C) aircraft destroyed, 8 KC-135 tankers damaged or lost, and multiple helicopters including UH-60 Black Hawk and HH-60G Pave Hawk variants.

These losses add pressure to replenish stockpiles and sustain operational tempo.

Trump framed the increase as necessary, stating federal resources must prioritize “military protection” over domestic programs.

Democrats sharply criticized the proposal. Senator Jack Reed said: “The U.S. Department of Defense doesn’t lack funding, but it currently lacks responsible civilian leadership & management.”

To offset costs, the administration proposes $73 billion in non-defense cuts, about 10 percent, while boosting law enforcement funding by over $40 billion.

The U.S. already faces annual deficits near $2 trillion and total debt exceeding $39 trillion, raising concerns about long-term sustainability.

Senate Democratic Leader Chuck Schumer said: “Trump’s budget is Rotten To The Core,” adding it prioritizes “bombs in the Middle East” over domestic needs.

Some Republicans support the plan, aiming to push defense spending toward 5 percent of GDP, while others warn of deepening fiscal imbalances.

Congress retains authority to modify or reject the proposal, setting up a contentious budget process.

The scale of the request highlights the trade-off between wartime demands and domestic priorities, as lawmakers weigh immediate military needs against rising debt and political opposition.

The United States is ramping up fuel exports to Cuba’s private sector, signaling a targeted economic strategy that differentiates between state-run enterprises and privately owned businesses, according to a Reuters exclusive report.

The Trump administration has enforced a de facto oil blockade on Cuba since January, aiming to pressure the government by restricting fuel supplies. However, an exception has been made for private businesses, allowing them access to limited fuel imports.

U.S. Secretary of State Marco Rubio said the policy is designed to prioritize independent entrepreneurs over entities linked to the Cuban government or military.

Since early February, approximately 30,000 barrels of fuel—equivalent to about 1.27 million gallons—have been shipped to private companies. While this represents only a fraction of Cuba’s estimated daily fuel needs of 100,000 barrels, the volume has been steadily increasing week by week.

Shipping data indicates that fuel is primarily transported in ISO tanks, with around 200 units delivered so far. Most shipments consist of diesel, with gasoline accounting for only a small share.

Fuel shipments have been carried aboard container ships traveling between Cuba and ports in the United States, Europe, and the Caribbean. Many vessels have docked at the port of Mariel, a key logistics hub west of Havana.

Data shows a growing number of shipments originating from the U.S. Gulf Coast, particularly from Louisiana, although many vessels also depart from Florida.

The new fuel flows have enabled some private businesses to resume operations after being severely impacted by shortages. Companies importing fuel include bakeries, wholesalers, and online retailers such as Supermarket23, which had previously suspended services due to the crisis.

With access to fuel, some businesses have restarted deliveries and stabilized operations, providing limited relief in an economy strained by energy shortages.

The U.S. Bureau of Industry and Security has authorized fuel exports specifically for eligible private-sector entities, with strict conditions. Imported fuel cannot be resold and must be used solely by the receiving businesses.

Both U.S. and Cuban authorities have implemented regulatory frameworks to ensure compliance, including safety standards for storage and distribution. Cuban firms have adopted measures such as on-site storage tanks and agreements to use existing infrastructure.

Despite the limited relief for private businesses, Cuba’s government continues to face severe fuel shortages. President Miguel Díaz-Canel recently stated that the country had not received fuel supplies for three months, without referencing private-sector imports.

The policy underscores Washington’s dual-track approach—tightening economic pressure on the state while fostering limited private-sector resilience.