Britain has suspended its plan to transfer sovereignty of the Chagos Islands to Mauritius, citing a lack of essential support from Washington. The archipelago, which hosts a vital joint U.S.-U.K. military facility on Diego Garcia, faced immediate jeopardy after President Trump publicly labeled the proposed transfer an “act of great stupidity” earlier this year.

The 2024 agreement stipulated Mauritius would gain sovereignty while allowing the U.K. to lease the base for an initial 99 years. London acknowledged proceeding without U.S. backing—a prerequisite for the deal—was impossible. This suspension follows existing transatlantic friction, exacerbated by disagreements over military contributions during the recent Iran conflict.

Opposition Conservatives quickly criticized the reversal, though the decision effectively shelves the transfer for the near term, given the impending end of Parliament’s current session. The original deal, intended to secure the base’s future, reportedly carried an annual leasing cost to Britain around £100 million.

For investors and defense planners, the stall returns uncertainty to a strategically important Indian Ocean asset. The failure to ratify means the U.K. has not secured the desired legal clarity for the base, especially given domestic legal challenges and demands from expelled Chagossians for return rights, making the arrangement politically fraught.