The main problem was the independence of Cuba. Revolts have been breaking out for several years in Cuba against Spanish domination. The United States later supported these revolts as it entered the Spanish-American War. There had been fears of war before, such as during the Virginius Affair in 1873. But by the late 1890s, American public opinion tilted in favor of rebellion due to reports of concentration camps (death estimates vary between 150,000 and 400,000 people) implemented to control the population. Yellow journalism exaggerated the atrocities to further increase public fervor and sell more newspapers.
The business world was just recovering from a deep depression and feared that a war would reverse the gains. As a result, most economic interests lobbied vigorously against entry into the war. President William McKinley ignored the exaggerated yellow press and sought a peaceful settlement. However, after the mysterious explosion and sinking of the U.S. Navy armored cruiser USS Maine in Havana Harbor on February 15, 1898, political pressure from the Democratic Party pushed McKinley into a war he had wished to avoid.
On April 20, 1898, McKinley signed a joint resolution of Congress demanding Spain's withdrawal and authorizing the president to use military force to help Cuba gain its independence. In response, Spain severed diplomatic relations with the United States on April 21. The same day, the United States Navy launched a blockade of Cuba. Both sides declared war; neither had any allies.
The ten-week war took place in both the Caribbean and the Pacific. As American pro-war agitators well knew, American naval power would prove decisive, allowing expeditionary forces to land in Cuba against a Spanish garrison already facing nationwide attacks from Cuban insurgents and again more ravaged by yellow fever. The invaders obtained the surrender of Santiago de Cuba and Manila despite the good performance of some Spanish infantry units and fierce fighting for positions like San Juan Hill. Madrid sued for peace after two Spanish squadrons were sunk in the battles of Santiago de Cuba and Manila Bay, and a third, more modern fleet was called home to protect the Spanish coast.
The result was the Treaty of Paris of 1898, negotiated on terms favorable to the United States, which allowed it to temporarily control Cuba and ceded ownership of Puerto Rico, Guam, and the Philippine Islands. The cession of the Philippines involved the payment of 20 million (610 million today) to Spain by the United States to cover infrastructure owned by Spain.
The defeat and loss of the last vestiges of the Spanish Empire was a profound shock to the Spanish national psyche and provoked a thorough philosophical and artistic reevaluation of Spanish society known as the Generation of 98. The United States conquered several island possessions around the world, leading to rancorous debate over the wisdom of expansionism.
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