Stock Markets February 20, 2026

UK Foreign Secretary to Meet U.S. Secretary of State as Dispute Over Diego Garcia Escalates

London seeks to manage bilateral defence ties after renewed U.S. criticism of Chagos sovereignty deal

By Jordan Park
UK Foreign Secretary to Meet U.S. Secretary of State as Dispute Over Diego Garcia Escalates

Britain's foreign secretary will hold talks in Washington with the U.S. Secretary of State amid a renewed flare-up over the sovereignty of the Chagos Islands and the continued operation of the joint U.S.-UK base on Diego Garcia. The dispute follows a sovereignty transfer agreed by London last year and a string of contradictory comments from the U.S. president about the arrangement. The base has been used for recent operations in the Middle East and humanitarian assistance to Gaza.

Key Points

  • Yvette Cooper will meet U.S. Secretary of State Marco Rubio in Washington to discuss defence and security matters amid U.S. criticism of the Chagos sovereignty deal.
  • The Chagos agreement transfers sovereignty to Mauritius while preserving Diego Garcia under a 99-year lease to maintain U.S. operations; Washington initially approved the deal but U.S. presidential statements have been inconsistent.
  • The Diego Garcia base has been used recently for operations against Yemen’s Houthis and for humanitarian aid to Gaza, highlighting its operational significance for military and relief missions - sectors affected include defence and international security.

Britain's foreign minister, Yvette Cooper, is scheduled to meet with U.S. Secretary of State Marco Rubio on Friday in Washington, in a visit driven by concerns over defence and security cooperation after fresh criticism from U.S. President Donald Trump about the status of the Chagos Islands.

Last year, Prime Minister Keir Starmer agreed to transfer sovereignty over the Indian Ocean archipelago to Mauritius while retaining control of the atoll Diego Garcia through a 99-year lease intended to preserve U.S. activity at the base. Washington initially signalled its approval of that arrangement, but the U.S. president has since offered mixed public commentary on the matter.

Trump has publicly shifted his view several times. In January he described the deal as an act of "great stupidity." Earlier this month he acknowledged that it was the best agreement Starmer could secure, and in subsequent days renewed his criticism. On one occasion the president urged Britain emphatically not to relinquish control of Diego Garcia, writing on Truth Social, "DO NOT GIVE AWAY DIEGO GARCIA!" He added that the base could be called upon in future military operations to "eradicate a potential attack" from Iran.

The State Department, under Rubio, issued a statement on Tuesday backing the Chagos agreement, yet the following day Trump called the move a "big mistake." Under the terms that govern the joint facility, British authorities must give prior approval for any operations launched from Diego Garcia.

The island has recent operational relevance: it has been used for missions targeting Yemen's Houthi fighters and for delivering humanitarian aid to Gaza. Those activities underscore Diego Garcia's dual utility in regional military planning and relief efforts.

Reports in Britain this week suggested the president's latest public objections were linked to London not yet granting permission for the use of the bases in potential strikes against Iran, with cited concerns that such strikes might breach international law. The U.K. Ministry of Defence, when asked about that reporting, declined to comment on operational matters and reiterated that Britain supports the ongoing political process between the U.S. and Iran.

Cooper's meeting with Rubio is set against an intensifying U.S. rhetoric on Iran, with Trump warning Tehran that it must reach a deal on its nuclear programme within 10 to 15 days or face "really bad things". The diplomatic engagement in Washington will therefore cover a mixture of defence cooperation, legal and operational constraints on base use, and the wider political context surrounding Iran.


Contextual note: The forthcoming talks reflect a need to reconcile the terms of the Chagos sovereignty settlement with allied operational requirements and legal considerations - issues that the British government says will be handled within the political process.

Risks

  • Diplomatic strain between the U.K. and the U.S. if disagreements persist over permission to use Diego Garcia could complicate allied defence planning - impacts defence and foreign policy coordination.
  • Operational constraints if Britain withholds advance approval for missions from Diego Garcia due to legal concerns may limit rapid military responses in the region - affecting military logistics and deployment capabilities.
  • Escalating rhetoric toward Iran, including a U.S. timeline for a nuclear deal, raises the risk of heighted regional tension that could necessitate further military positioning or humanitarian operations - impacting defence and humanitarian response sectors.

More from Stock Markets

Non-importer distributors, retailers face risk of losing share of up to $175 billion in tariff refunds Feb 20, 2026 Morgan Stanley Highlights UniCredit and Huntington as Top Bank Picks After Strategic Reviews Feb 20, 2026 Fitch Cuts Olin's Long-Term Rating to BB+ Citing Prolonged Earnings Weakness Feb 20, 2026 KKR Seeks Buyer for BMC Helix in Deal That Could Reach $1.5 Billion Feb 20, 2026 Moody's Elevates Hudbay Minerals to Ba3, Maintains Stable Outlook Feb 20, 2026