President Donald Trump has escalated tensions with Spain after the country refused to allow the United States to use its military bases for operations related to Iran. Trump criticized Spain as uncooperative and said he had directed the Treasury secretary to cut off trade and other dealings. He also faulted Spain for declining to increase its defense spending to five percent of gross domestic product, a level he said other members of the North Atlantic Treaty Organization have agreed to meet.

Spanish officials denied reports that they would deploy naval assets to support regional defense efforts and reaffirmed their commitment to diplomacy and de-escalation in the Middle East. The Spanish foreign ministry condemned Iranian attacks on Turkey and Qatar while emphasizing dialogue. Prime Minister Pedro Sánchez has previously taken positions critical of Israel, including restrictions on military-related transit through Spanish territory.

The dispute has raised concerns about economic consequences, particularly a pending multibillion-dollar acquisition by Banco Santander of a United States bank. Shares of Santander and its takeover target declined following Trump’s remarks. Despite the tensions, Santander’s chief executive expressed confidence that relations between Spain and the United States would soon improve.