A report that Washington could use the Falkland Islands to pressure Britain into meeting its NATO defense commitments drew a swift rebuttal Sunday from a former Pentagon official, who insisted the long-standing U.S. neutrality on the islands remains unchanged.

The tension comes amid a six-month Pentagon review of U.S. troop deployments in Europe led by Under Secretary of War for Policy Elbridge Colby, according to the special relationship … You squeeze a budget with tools that move a budget," he said of Washington’s process.

"Public pressure from the president. Annual Hague reviews. A dated 3% by 2030, or a funded path to 3.5% core by 2035, before the next UK defense budget. The special relationship is a privilege, not a welfare program.

"Tariffs if the White House wants them," Murphy warned.

A U.K. government spokesperson told Fox News Digital that the UK position on the Falkland Islands is "long-standing and unwavering."

"They are and will remain a British Overseas Territory in line with the wishes of the Falkland Islanders."

"The U.K. is playing a central role in NATO and strengthening collective defence across Europe. We are NATO's third-largest cash spender on defence and the only European NATO member to commit our nuclear deterrent to the Alliance," the spokesperson added.

Fox News Digital reached out to the Pentagon, which said it had nothing to add.