Events in the year 1854 in Iceland. Incumbents Monarch: Frederick VII of Denmark Prime Minister of Denmark: Anders Sandøe Ørsted (until 12 December); Peter Georg Bang onwards Events The Danish government relaxed the trade ban that had been imposed in 1602, and Iceland gradually began to rejoin Western Europe economically and socially. Births 4 June − Pétur J. Thorsteinsson, merchant. References 1850s in Iceland Years of the 19th century in Iceland Iceland Iceland