Saturday, August 08, 2026

What's Behind Iceland's Security Headache | Mapped Out

August 8, 2026 | Iceland is known for its volcanoes, geysers and waterfalls among tourists from all around the world. But did you know Iceland is a founding member of NATO but doesn't have its own army and no defense budget even?

During the Cold War, it was crucial in the alliance's efforts to detect Soviet submarines using P-3 Orion patrol aircraft because the island lies at a chokepoint known as the Greenland-Iceland-UK (GIUK) gap between the Arctic Ocean and the Atlantic.

That strategic location was and still is especially important to the US which is why among security experts, Iceland is often dubbed an "unsinkable US aircraft carrier" in the middle of the North Atlantic.

But US President Donald Trump threatening Greenland and the NATO alliance as a whole, as well as growing tensions in the Arctic, have Iceland on edge.

Following Russia's full-scale invasion of Ukraine and its increased military presence in the Arctic, Iceland started rethinking its security set-up. Could depending on NATO – and more specifically the US – now be vulnerability?

Iceland's Prime Minister Kristrún Frostadóttir has announced an increase in Iceland's defense-related spending. And the country is looking towards the European Union. It is even holding a referendum to decide whether the country should restart negotiations for EU membership that it once put on ice in 2013.

So, how is Iceland adapting to a new geopolitical environment despite having no army?