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Beginning of the Campaign
In 1940, Francisco France met Adolf Hitler in Hendaye, France. When Hitler requested that Spain enter the war, Franco responded by making demands, such as food, weapons, and territorial gains such as Gibraltar and Northern Africa. In OTL, Hitler denied the demands and Spain remained neutral. In this timeline, while focusing on the Mediterranean, accepts the demands. Military advisers are sent to Spain to train its soldiers. By May 1941 Spain had nearly 50,000 troops ready for deployment.
On May 6, a Spanish-German force invaded Gibraltar. It took the British troops stationed there by storm, and the Luftwaffe bombed several Royal Navy ships based there. By May 10 Gibraltar was under Spanish control. In order to meet Franco's demands, the Vichy French were forced to hand over French Morocco to Spain. Spanish troops quickly occupied the area. The area was industrialized; and began churning out supplies for Spain's armies in future battles.
In the Balkans, Benito Mussolini decided to carve an empire of his own, and occupied Albania. On October 28th 1940, the Italians invaded Greece with units moving in from Albania. The Greek Army was surprisingly strong, and pushed back the invaders. This, personal rivalries between Italian generals, and unfavorable weather conditions hampered Italian hopes. More troops were sent to the area, forcing the Italians to scrap their plans for Egypt. The Greeks soon outnumbered the Italians, and began pushing into Albania. Hitler saw that Italy could not defeat Greece, and prepared its own attack from Bulgaria.
On April 12, the German army crossed the border and smashed into Greek lines. The Greeks, already tired from their previous battles with the Italians, were forced to retreat. German blitzkriegs eventually led to the capture of Athens, and a Greek surrender. In the occupation, the Italians were given southern Greece, and the Bulgarians the north. Germany occupied the most important regions, which included Athens and Thessalonki.
The Greek government had escaped to Crete, which was attacked by Nazi paratroopers in a giant attack. After seven days of tough fighting, the Allies evacuated and Crete was occupied by the Axis. Due to the enormous casualties suffered by paratroopers, Hitler forbade airborne operations. Crete would prove an important Axis territory, however, due it being a staging point for the Invasion of Egypt.
Axis Invasion of Egypt
On June 22, 1942, the Axis invasion of Egypt began. The Germans invaded from staging points in Greece and Crete and attacked the Nile Delta. A combined Axis drive from Libya would take it across the coast toward the Delta. It was planned for the Libyan attack to take Alexandria and the German attack to take the Cairo. The plan began without a snag: the German landing on the Delta overpowered British defenders there, and moved out of the beachhead. They met British forces at Damanhur on July 2, and a fierce battle raged for the city. The commander of British forces was Bernard Montgomery, and when he realized that the real goal was Alexandria, sent his main force to protect the city. The British evacuated Damanhur in ten days, but had forced the German forced to rest for a day.
On the other side the Axis force drove ahead on tanks toward Alexandria. A combined British-Free French force had been amassed at El Alamein, hoping to stop the western assault. They had made numerous defensive positions. The 90th Light Infantry division strayed too far and ran into the South African defensive positions. The Panzer divisions supporting them were caught in a sandstorm, and could not help them. The Axis force was continually defeated, and could not pass. The defeat at El Alamein forced Germany to abandon its attack on Cairo and launch another landing near El Alamein. The extra German pressure forced the British to abandon its position and retreat. Other British forces crossed the Suez Canal and defeat German forces there. The British drive moved west to meet the Axis threat.The result accumulated in the Battle of Alexandria, during which thousands of soldiers were killed. More German divisions were sent, and the British eventually retreated. The Axis continued to move east, and arrived at Cairo bloody and exhausted. The Battle of Cairo began, during the initial defense the British defeated the incoming Axis force. Troops destined for Russia in OTL were sent here, and the Cairo capitulated. Holding Cairo would be difficult, as sending supplies in would be hampered by continual British crossings of the Suez. In February 1943, Hitler prepped his soldiers for an attack across the Suez.
Attack on the Suez
Germany promised Japan to give it oil taken from the Middle East, and Japan decides not to attack America. The American economy is not geared toward war, and remains stagnate.
Rommel's tanks cross the Suez Canal and German warships blockade it from incoming Royal Navy ships, which basically closes off the Mediterranean Sea from incoming British warships. They defeated a British force sent to stop them in Sinai, and following the defeat all British troops evacuated Sinai. The British called for Jews around the world to defend Israel, and thousands of Jews migrated to join British ranks. The Jews were hastily gathered, but put up a good defense. By April German forces had taken Gaza and southern Israel. The Germans then turned east in Iraq. Rashid Ali al-Gaylani led several rebellions in Iraq, which allowed German forces to enter. The Germans soon had control of Iraq. Gaylani was installed as a ruler of the puppet state Iraq. The large oil fields there refueled German tanks and jeeps, and were also shipped to Japan.
With the oil fields under control, the Germans moved west. Troops crossed the Jordan River and attack British defenses on the West Bank. Combined British-Jewish forces prevented Germany from going any further, so Rommel tried to outflank them by invading Syria. They defeated the British presence there and captured Damascus. It became clear the Germans were trying to get the British and Jews stuck in a pocket. Before any evacuation could take place, the Germans closed the pocket. Rommel's force moved inward and took out a major Allied force at Jerusalem. The Allies retreated to Tyre, which was besieged in June. After four days the city fell, and Bernard Montgomery surrendered. A major British force had been destroyed, and Persia and India were open to attack.
War in Iran
Germany initially planned to make peace with Britain following the conquests of the western Mediterranean, but British attacks from Persia ended this. German leaders met with the disposed king of Iran, Reza Khan, and asked to lead rebellions in Iran. Khan's supporters marched on Tehran and fought with British troops. Other uprisings occurred in the country side. While British troops scrambled to end attacks, German troops poured in and took control of major railroads. This prevented the British from traveling across the country, which led to their defeat. Rommel's force stormed Tehran and took control of the city. German forces pushed the British out of the country and back to India.
Churchill feared for the safety of India, and sent the army to counterattack against Iran. British and German troops met at Mashhad and the British attempted landings in the Persian Gulf. The Mashhad attack was quickly dispatched, but the landings were successful. The British attempted to capture coastal cities with petroleum, but quick responses from German troops from Iraq neutralized the threat. The newly arrived German Navy sunk several Royal Navy ships, and the attack ended.
German Stukas began bombing runs against Indian cities, and U-Boats sunk British ships around. Because of low morale and loss of territory Churchill requested an end to the war.