The 1970s were marked by the Cod Wars — several disputes with the United Kingdom over Iceland 's extension of its fishing limits to offshore . Iceland hosted a summit in Reykjavík in 1986 between United States President Ronald Reagan and Soviet Premier Mikhail Gorbachev , during which they took significant steps toward nuclear disarmament . A few years later , Iceland became the first country to recognise the independence of Estonia , Latvia , and Lithuania as they broke away from the USSR . Throughout the 1990s , the country expanded its international role and developed a foreign policy oriented toward humanitarian and peacekeeping causes . To that end , Iceland provided aid and expertise to various NATO-led interventions in Bosnia , Kosovo , and Iraq
summit in Reykjavík in 1986
Reykjavík Summit
Iceland