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Iceland is a Nordic island nation in the North Atlantic. It has become a focal point of international relations following comments made by the U.S. administration regarding Arctic territory and strategic interests.
During his speech at the World Economic Forum in Davos on January 21, 2026, President Trump reignited the 'Greenland Deal' discussion. He suggested that the U.S. is interested in a 'territorial partnership' involving Greenland and discussed Iceland's strategic importance for North Atlantic security and undersea cable protection, sparking a surge in diplomatic queries.
The Icelandic and Danish governments have reiterated that their territories are not for sale, calling the proposals outdated. Domestic supporters of the president argue that such deals are necessary to counter Chinese and Russian influence in the Arctic, while critics view the rhetoric as damaging to NATO alliances.