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 U.S. Department of Justice confirmed that the email account of FBI Director Kash Patel had been compromised, following claims by a hacking group with alleged ties to Iran. The incident marks a significant cybersecurity concern involving a top U.S. intelligence official.

Officials at the Department of Justice acknowledged the breach but declined to provide further details about the scope or potential impact. The confirmation comes after the hackers publicly claimed responsibility and began releasing materials online.

A group calling itself “Handala Hack Team” said it had accessed Patel’s personal email inbox and published photos along with what it described as his resume. In a statement posted online, the group declared that Patel had joined its list of “successfully hacked victims.”

Cybersecurity firm Cyble described the group as an emerging but increasingly visible threat actor since late 2023, primarily targeting Israeli-linked entities and organizations.

While the hackers have released samples of the alleged data, Reuters reported it could not independently verify the authenticity of the emails. However, initial reviews suggest the material may include a mix of personal and professional correspondence dating from 2010 to 2019.