US weighs direct purchase of Chagos Islands as tensions rise over Diego Garcia

Washington is reportedly drafting contingency plans to acquire the Chagos archipelago, threatening to upend the UK’s sovereignty transfer to Mauritius.

The future of the strategically vital Indian Ocean territory of Chagos remains in flux as reports emerge that the United States is evaluating a direct purchase of the islands. While the United Kingdom had previously moved to transfer sovereignty of the archipelago to Mauritius—while retaining a long-term lease on the joint military facility at Diego Garcia—the plan has encountered significant pushback from American officials. According to recent reports, Washington is exploring options to bypass the current UK-led agreement entirely to secure the long-term viability of the base.

Strategic anxieties and the shadow of Iran

The American interest in securing independent control stems from deep-seated security concerns regarding the influence of China and Iran in the region. Diego Garcia acts as a critical hub for long-range bomber missions and intelligence operations, and senior US officials fear that a Mauritian-led administration could expose the facility to surveillance risks. These anxieties have been exacerbated by escalating geopolitical tensions across West Asia, where the UK government has reportedly moved to restrict the use of British air bases for potential strikes on Iran, creating a friction point between London and Washington.

For the Trump administration, the Chagos handover has been a target of sharp criticism. The US president has publicly characterized the UK’s arrangement as an "act of great stupidity," arguing that it undermines the strategic positioning necessary for regional security. This skepticism is not an isolated policy shift; the administration has even drawn parallels between the Chagos situation and the prospect of acquiring Greenland, signaling a broader, more assertive approach to maintaining US military reach across global flashpoints.

A complex diplomatic deadlock

While the possibility of an American purchase is currently being discussed within US treasury circles and at high levels of government, officials emphasize that this is one of several options rather than an immediate, finalized policy. Any move to acquire the islands would necessitate intricate coordination with Britain and, eventually, a complex negotiation process with Mauritius. Despite the loud pushback from Washington, Downing Street has maintained that it remains committed to the sovereignty handover, even as the diplomatic landscape grows increasingly volatile.

The impasse reflects a fundamental disagreement over how to balance regional diplomacy with hard-power security needs. For India and other observers in the Indian Ocean region, the outcome of this standoff carries significant weight, as Diego Garcia remains the most important American military platform in the vicinity. As the UK and US navigate these competing priorities, the viability of the base is being treated as a non-negotiable asset for American long-range operations, leaving the ultimate fate of the islands—and the sovereignty deal itself—hanging in the balance.