Spain has pushed back against the White House’s claim that it agreed to cooperate militarily with Washington amid the conflict with Iran, doubling down on its anti-war stance despite the U.S. president’s threat to sever trade ties.

White House spokesperson Karoline Leavitt said on Wednesday that Madrid’s position of refusing to allow the country’s military bases to be used in the ongoing Iran war had now changed.

“With respect to Spain, I think they heard the president’s message yesterday loud and clear, and it’s my understanding, over the past several hours, they’ve agreed to cooperate with the U.S. military,” Leavitt told reporters.

“The president expects all of our European allies, of course, to cooperate in this long sought-after mission, not just for the United States but also for Europe, to crush the rogue Iranian regime.”

Spain swiftly and “categorically” rejected Leavitt’s assertion, however.

“The Spanish government’s position on the war in the Middle East … and the use of our bases has not changed at all,” Foreign Minister Jose Manuel Albares told private radio station Cadena Ser, according to Reuters.

The chaotic messaging between two NATO allies comes shortly after U.S. President Donald Trump vowed to cut off all trade with Madrid, calling Spain “terrible” and repeating his criticism of Spain’s defense spending.

Spanish Prime Minister Pedro Sánchez responded on Wednesday by describing the sprawling Middle East crisis as a “disaster” and summarized his government’s position in just three words: “No to war.”

Sánchez has emerged as one of the European Union’s leading critics of U.S. and Israeli strikes against Iran, having also been an outspoken critic of Israel’s war in Gaza.

Arancha González, former foreign minister of Spain, told CNBC on Thursday that Trump’s attacks on Sánchez were not the first time the U.S. president has criticized a European leader.

British Prime Minister Keir Starmer, Ukrainian President Volodymyr Zelenskyy and Denmark’s Mette Frederiksen have all previously been singled out by Trump.

“What do they all have in common? They have said ‘no’ or they have questioned motives by the U.S. president,” González said. She added that political leaders who stood firm were more likely to be in a better position over the long term.

González, who now serves as the Dean of the Paris School of International Affairs (PSIA) at Sciences Po, also issued a warning to Washington over Trump’s threat to sever trade ties with Madrid.

“Let me say that it would be foolish of the U.S. to have a trade embargo on a country with which it has a trade surplus. The U.S. has a trade surplus with Spain. President Trump always complains about imbalanced trade relationships. Well, here is a great trade relationship where he is a winning,” González told CNBC’s “Squawk Box Europe” on Thursday.

Spanish Prime Minister Pedro Sanchez on Wednesday doubled down on his criticism of the U.S strikes against Iran, describing the escalating Middle East conflict as a “disaster.”

His comments come after U.S. President Donald Trump pledged to cut off trade with Madrid after Spain’s government prevented two jointly operated bases in its territory from being used in the strikes.

“Spain has been terrible,” Trump said on Tuesday, during a White House news conference alongside German Chancellor Friedrich Merz. “We’re going to cut off all trade with Spain. We don’t want anything to do with Spain,” he added.

In a televised address on Wednesday morning, Sanchez said: “Very often great wars start with a chain of events spiralling out of control due to miscalculations, technical failures, and unforeseen circumstances. Therefore, we must learn from history and cannot play Russian roulette with the fate of millions,” according to a CNBC translation.

Sanchez warned of “repeating the mistakes of the past,” drawing a comparison with the invasion of Iraq in the early 2000s, and summarized the government’s position as: “No to war.”

Spain’s socialist prime minister has emerged as one of the leading critics of the U.S. and Israeli strikes against Iran among leaders of EU nations.

Trump’s latest comments follow his condemnation of Madrid’s refusal to meet the NATO defense spending target of 5% of GDP.

Spain’s Ibex 35 index traded 1.4% higher at around 10:17 a.m. London time (5:17 a.m. ET), reversing earlier losses amid U.S. trade jitters. The pan-European Stoxx 600 index, meanwhile, advanced around 1.2%.

Trump’s threat to punish Spain on trade would be challenging, given that the 27 EU nations negotiate trade agreements collectively.

“It’s naive to believe that democracy or respect among nations can spring from ruins, or to think that blind and servile obedience is a form of leadership. On the contrary, I believe this position is leadership,” Sanchez said.

“We will not be complicit in something that is bad for the world and contrary to our values ​​and interests simply out of fear of reprisals from someone,” he added.

— CNBC’s Charlotte Reed contributed to this report.

British companies are seeking deeper trade ties with Europe, business groups told CNBC, as U.S. President Donald Trump unveiled a sweeping 15% tariff on all imports after the Supreme Court struck down previous levies.

New tariffs would mark a 50% increase on the level negotiated last year in a trade deal between the U.K. the U.S., making the country one of the worst hit, according to analysis from think tank Global Trade Alert.

While U.S. Trade Representative Jamieson Greer said the administration “expects” to stand by trade deals, the U.K. government is reportedly in ongoing discussions with counterparts in America.

The seesawing uncertainty is increasingly forcing U.K. businesses to look to closer alignment with the European Union and European countries, as they hunt for predictable trade partnerships, groups which represent U.K. businesses told CNBC.

“There’s just no certainty or consistency and companies are very weary of this,” said William Bain, head of trade policy at the British Chambers of Commerce (BCC), which represents 50,000 businesses.

“They’re potentially looking at other options in terms of doing more trade with Europe or with the Indo-Pacific [region], where there seem to be less risk of fluctuations,” he told CNBC.

Trump’s announcement that there would be blanket tariffs on all imports to the U.S. over the weekend brought further headaches to Europe’s business sector, which had seen the longstanding global trading order torn up last year.

In April, the U.S. upended the status quo by imposing a range of tariffs on trading partners across the world.

The new tariffs have raised alarm in Europe, with governments asking for more clarity from the White House as to what the new policy means for their trade deals. The EU negotiated a 15% duty on most exports with the U.S. in 2025.

The “majority” of the U.K.-U.S. deals on car, steel and pharma tariffs were not expected to change but discussions were ongoing, the BBC reported, citing an official spokesperson of U.K. Prime Minister Keir Starmer.

LONDON — European stocks opened higher on Wednesday as investors weighed the latest U.K. inflation data and monitored global market developments.

The pan-European Stoxx 600 was roughly 0.5% higher shortly after the open, and the U.K.’s FTSE 100 and France’s CAC 40 were up 0.3%, while Germany’s DAX rose 0.4%.

German life sciences company Bayer extended losses and was down 7.3% in early trading after its Monsanto Unit had proposed paying $7.25 billion to settle lawsuits claiming that its weed killer Roundup was causing cancer, it said in a press release on Tuesday.

It said it expects its provisions and litigation liabilities to rise from 7.8 billion euros ($9.24 billion) to 11.8 billion euros, with approximately 5 billion euros in litigation-related payments in 2026. Bayer expects a negative free cash flow for this year.

The UK inflation rate fell to 3% in January, according to the latest figures from the Office for National Statistics. Economists polled by Reuters had forecast the consumer price index to fall to 3%, down from 3.4% in the twelve months to December.

“The UK has experienced higher and more prolonged inflation compared to the US or eurozone area, but today’s data shows the tide is changing,” David Smith, portfolio manager at Henderson High Income Trust plc, said.

“Inflation is likely to drop to 2% by the end of the year if not earlier, opening the door to further interest rate cuts by the Bank of England,” Smith added.

The British Pound was flat against the dollar following the as-expected data, at $1.3562. British government bond yields, known as gilts, also held steady.

Sterling dipped and British government bond yields fell during Tuesday’s trading session after data showed the U.K.’s unemployment rate rose to a five-year high, while wage growth slowed.

Earnings on Wednesday come from Glencore, BAE Systems, Orange and Euronext. 

Asian stocks pushed higher overnight in holiday-thinned trade with markets in mainland China, Hong Kong, Singapore, Taiwan and South Korea among those closed for Lunar New Year holidays.

U.S. stock futures were near the flatline in overnight trading after a tepid session on Tuesday. Traders on Wednesday will be watching for the Federal Reserve minutes from the policymakers’ January meeting.

The next big catalyst this week, however, will likely be the personal consumption expenditures price index reading that’s due on Friday. The PCE, the Fed’s preferred inflation gauge, will give further insight into the state of the economy.

— CNBC’s Pia Singh contributed to this market report.