If you do not take out Gibraltar, then the UK counter (with the SZ8 SUB in SZ7) is to attack the MED fleet, not the fleet in SZ7.
Use the SZ15 DST, 2 FIGs, 1 BOM against 1 BB, 1 TRN.
UK wins this fight w the loss of only 1 unit most of the time.
Then consolidate the US/USSR/UK naval units in SZ8
4 TRN, 1 SUB, 1 DST, 1 BB + build units from UK1 (I’d do an AC and land the EUS FIG on it, plus a TRN)
Total Allied Force: 5 TRN, 1 SUB, 1 DST, 1 AC, 1 FIG, 1 BB
and invite the Germans to counter
5 FIG (1 lost in Ukraine on R1, newly built G1 FIGs cannot reach SZ8)
3 SUB, 1 TRN, 1 DST
Germany loses almost their entire AF, does lose their entire Navy.
Now UK builds their fleet in UK2, USA sails the fleet units they built in US1 and the SZ20 DST into position, and Germany is down to a land power, with no navy left, and only 2 air units. Meanwhile, Africa stays British due to lack of Luftwaffe support and the India counter attack, and Russia is gaining lots of gorund with no air threat for Germany to use for territory trades (meaning Germany is trading INF and ARM for Russian INF while they lose ground in central Europe.