Spain rejects US pressure over Iran war, with Prime Minister Pedro Sánchez making clear that his government will not change course despite threats from Donald Trump to sever trade ties. The standoff has widened a rift between Madrid and Washington at a time when the conflict involving Iran, Israel, and the United States continues to destabilize global politics and financial markets.
Speaking at a public event on Wednesday, Sánchez said Spain would not allow fear of retaliation to dictate its foreign policy. He framed his opposition to the military campaign against Iran as a matter of principle, warning that backing the war would run counter to Spain’s values, its national interests, and international law.
“We are not going to be complicit in something that harms the world simply because someone threatens us,” Sánchez said, drawing applause from supporters. His remarks followed Trump’s warning a day earlier that the United States could “cut off all trade with Spain” after Madrid denied access to its military bases for US operations linked to strikes on Iran.
Trump’s trade threat rattles diplomacy but not markets
Trump’s comments marked a sharp escalation in rhetoric against one of Washington’s long-standing European allies. He accused Spain of undermining US security interests by refusing to allow American forces to use bases in southern Spain for the Iran operation. According to Trump, Madrid’s position justified severe economic consequences.
Yet financial markets in Spain showed little immediate concern. The Ibex 35 equity index traded higher as European stocks rebounded broadly, while Spanish government bonds edged up, suggesting investors were skeptical that Trump’s threat would translate into concrete action.
Analysts pointed out that cutting off trade with Spain would be legally and politically complex. The United States trades with Spain as part of the broader European Union, meaning any sweeping restrictions would likely trigger retaliation from Brussels.
Trump later hinted he might have the authority to impose a full embargo on Spanish goods, but stopped short of saying he would do so. The lack of clarity did little to ease diplomatic tensions, even as markets remained calm.
European Union rallies behind Madrid
The European Commission quickly closed ranks with Spain. Stéphane Séjourné, speaking in Brussels, said any threat against a member state amounted to a threat against the entire bloc. His comments underscored the EU’s long-standing position that trade policy is handled collectively, not bilaterally.
Support for Spain also came from other European capitals. Emmanuel Macron spoke with Sánchez and conveyed France’s solidarity, according to officials at the Élysée Palace. Messages of backing also arrived from Ursula von der Leyen and António Costa, reinforcing the sense of unity within the bloc.
For Sánchez, the show of European support strengthened his argument that Spain was not acting in isolation, but as part of a broader effort to uphold international norms amid a rapidly escalating war.
Spain’s stance on Iran and the limits of military cooperation
At the heart of the dispute is Spain’s refusal to support the US and Israeli military campaign against Iran. Madrid has described the operation as unjustified and dangerous, arguing that it lacks a clear legal mandate and risks plunging the region into a wider war.
On Sunday, Sánchez said the strikes amounted to a military intervention outside international law. He also made clear that the treaty governing US access to Spanish military bases does not allow their use for offensive operations unrelated to collective defense.
The Spanish government warned Washington that allowing such use would effectively make Spain a participant in the conflict, a step Sánchez has repeatedly ruled out.
Trump has expressed similar frustration with other allies. He criticized the United Kingdom for blocking the use of a military base on Diego Garcia for strikes on Iran, though he stopped short of threatening London with trade retaliation. His comments, however, signaled a broader impatience with allies unwilling to fully align with Washington’s approach.
Trade, defense spending, and deeper grievances
The clash over Iran has also revived older tensions between Trump and Sánchez, particularly over defense spending. Trump has long pushed NATO allies to raise military budgets to 5% of gross domestic product, a target Spain has resisted as unrealistic and socially damaging.
Last year, Trump suggested Spain should face “trade punishment” for failing to meet US expectations on defense. That history has shaped perceptions in Madrid that the current threat is part of a broader pattern of pressure rather than a response solely tied to Iran.
Spain runs a €13.4 billion trade deficit with the United States, with total bilateral trade amounting to nearly €47 billion. Sánchez said his government is considering support measures for Spanish businesses and workers to cushion potential economic fallout from the conflict and any resulting trade disruptions.
Preparing for a prolonged and costly conflict
In his speech, Sánchez warned that the war involving Iran could drag on for weeks or longer, with mounting casualties and severe economic consequences. He urged caution against responding to one breach of international law with another, arguing that such cycles have historically led to humanitarian disasters.
“You cannot answer one illegality with another,” Sánchez said. “That is how tragedies for humanity begin.”
The Spanish leader reiterated his call for an immediate ceasefire and a diplomatic solution, positioning Spain as a vocal advocate for de-escalation at a time when many governments are struggling to balance alliances with public opposition to the war.
A test of transatlantic relations
As the conflict continues, Spain’s refusal to bend under US pressure is shaping up as a test case for transatlantic relations in an era of heightened geopolitical risk. While Trump’s administration has emphasized hard power and economic leverage, European leaders are increasingly wary of being drawn into conflicts they see as destabilizing and legally questionable.
For now, Spain appears determined to hold its line. Backed by the European Union and buoyed by relatively calm markets, Sánchez is betting that solidarity and diplomacy will outweigh the threat of unilateral trade retaliation.
Whether that calculation holds may depend on how far Washington is willing to go — and whether the war in Iran shows any sign of easing. What is clear is that Spain rejects US pressure over Iran war, setting the stage for a prolonged diplomatic confrontation with implications well beyond Madrid and Washington.
