UK politicians have slammed Washington's suggestion of reviewing Britain's claim to the Falkland islands, with Downing Street saying the sovereignty of the Falkland Islands 'rests with the UK'.

The Pentagon is exploring ways for the US to punish NATO countries for failing to support the Iran war, including reviewing the UK's claim to the territory and suspending Spain from the alliance.

The policy options are detailed in an email expressing frustration at some allies' perceived reluctance or refusal to grant Washington access, basing and overflight (ABO) rights for the Iran war, a US official told Reuters.

Following the threat, a Downing Street spokesman said the sovereignty of the Falkland Islands 'rests with the UK'.

Asked about the report, the spokesman said: 'The Falkland Islands have hugely voted overwhelmingly in favour of remaining a UK overseas territory, and we've always stood behind the islanders' right to self-determination and the fact that sovereignty rests with the UK.' 

The spokesman continued: 'We've expressed this position previously clearly and consistently to successive US administrations and nothing is going to change that.' 

Opposition leader Kemi Badenoch meanwhile said there is no need to take Trump's threat seriously, calling it 'absolute nonsense.'

Other politicians took to social media to reaffirm the islands' British status, with Labour MP for York Outer Luke Charters sharing his support alongside photos of himself on the territory. 

Conservative Member of Parliament for Huntingdon Ben Obese-Jecty wrote: 'The US State Department position on the Falklands is already: 'We recognize de facto United Kingdom administration of the islands but take no position regarding sovereignty.'

'What exactly are they planning to review, recognising Argentina's claim? It was only three weeks ago that Javier Milei, a Trump ally, reasserted Argentina's claim on the 'Malvinas'. 

'The implication here is that the US are prepared to entertain this view.'

And Labour for Newcastle-under-Lyme added: 'The Falklands are [British] and we don't need others to tell us that.'

This is a breaking news story. More to follow.