It would be very foolish of franco to join the Axis :due to the destructions of the Civil War,Spain was starving,and was surviving by the US aid (food and oil),this would disappear if Franco joined the axis . About Gibraltar in Axis hands:without the deployment of scarce aircraft and UBoats,Gibraltar would be useless for the Germans and Britain would counter the loss of Gibraltar by ..the occupation of the Canarians.Btw:the distance from Gibraltar to the atlantic coast of Portugal is already somme 400 km. About the junction of the Axis forces in the Caucasus the farthest the AK could go was the Suez Canal and AG A was already blocked at the beginning of the Caucasus,it never reached the frontier with Turkey. A German threat to India was only a phantasy . Notwithstanding that the Soviet oil production was falling sharply between 1940 and 1945 (total from 32 to 19 million ton and for Baku from 22 to 11),this did not prevent the SU to hoist its flag on the Reichstag . There is a very interesting thread on Gibraltar on this forum by Brndirt.