US Atlantic Fleet Ships steam out of Reykjavik harbour in July 1941

The Allied occupation of Iceland during

World War II World War II or the Second World War, often abbreviated as WWII or WW2, was a world war that lasted from 1939 to 1945. It involved the vast majority of the world's countries—including all of the great powers—forming two opposing ...

began with a

British invasion The British Invasion was a cultural phenomenon of the mid-1960s, when rock and pop music acts from the United Kingdom and other aspects of British culture became popular in the United States and significant to the rising "counterculture" on ...

intent on occupying and denying

Iceland Iceland ( is, Ísland; ) is a Nordic island country in the North Atlantic Ocean and in the Arctic Ocean. Iceland is the most sparsely populated country in Europe. Iceland's capital and largest city is Reykjavík, which (along with its s ...

to Germany. The

military operation A military operation is the coordinated military actions of a state, or a non-state actor, in response to a developing situation. These actions are designed as a military plan to resolve the situation in the state or actor's favor. Operations ma ...

, codenamed Operation Fork, was conducted by the

Royal Navy The Royal Navy (RN) is the United Kingdom's naval warfare force. Although warships were used by English and Scottish kings from the early medieval period, the first major maritime engagements were fought in the Hundred Years' War against ...

and Royal Marines. In time, some of the British garrison was replaced by Canadian and later American forces, despite the fact that the United States was not yet in the war.

Invasion

The invasion of Iceland was a

British British may refer to: Peoples, culture, and language * British people, nationals or natives of the United Kingdom, British Overseas Territories, and Crown Dependencies. ** Britishness, the British identity and common culture * British English, ...

conducted by the

and Royal Marines during

to occupy and deny

to Germany. At the start of the war, Britain imposed strict export controls on Icelandic goods, preventing profitable shipments to Germany, as part of its naval blockade. Britain offered assistance to Iceland, seeking cooperation "as a belligerent and an ally", but Reykjavik declined and reaffirmed its neutrality. The German diplomatic presence in Iceland, along with the island's strategic importance, alarmed the British. On 9 April 1940, Germany occupied Denmark, whose monarch was

still A still is an apparatus used to distill liquid mixtures by heating to selectively boil and then cooling to condense the vapor. A still uses the same concepts as a basic distillation apparatus, but on a much larger scale. Stills have been use ...

the Icelandic head of state. After failing to persuade the Icelandic government to join the Allies, the British invaded on the morning of 10 May. The initial force of 746 British Royal Marines commanded by Colonel Robert Sturges disembarked at the capital

Reykjavík Reykjavík ( ; ) is the capital and largest city of Iceland. It is located in southwestern Iceland, on the southern shore of Faxaflói bay. Its latitude is 64°08' N, making it the world's northernmost capital of a sovereign state. With a po ...

. Meeting no resistance, the troops moved quickly to disable communication networks, secure strategic locations, and arrest German citizens. Requisitioning local transport, the troops moved to

Hvalfjörður Hvalfjörður (, "whale fjord") is situated in the west of Iceland between Mosfellsbær and Akranes. The fjord is approximately 30 km long and 5 km wide. The origin of the name Hvalfjörður is uncertain. Certainly today there is no pr ...

Kaldaðarnes Kaldaðarnes is an ancient farm estate in Iceland on the banks of the Ölfusá, Ölfus river, around west of Selfoss (town), Selfoss. Records of a farm at this location exist back to year 1200 AD where it is stated that Kaldaðarnes was one of ...

, Sandskeið, and

Akranes Akranes () is a port town and municipality on the west coast of Iceland, around north of the capital Reykjavík. The area where Akranes is located was settled in the 9th century; however, it did not receive a municipal charter until 1942. His ...

to secure landing areas against the possibility of a German counterattack. On the evening of 10 May, the

government of Iceland The politics of Iceland take place in the framework of a parliamentary representative democratic republic, whereby the president is the head of state, while the prime minister of Iceland serves as the head of government in a multi-party syste ...

issued a protest, charging that its neutrality had been flagrantly violated and its independence infringed, noting that compensation would be expected for all damage done. The British promised compensation, favourable business agreements, non-interference in Icelandic affairs, and the withdrawal of all forces at the end of the war. Resigning themselves to the situation, the Icelandic authorities provided the invasion force with ''de facto'' cooperation, though formally maintaining a policy of neutrality. In the following days air defence equipment was deployed in Reykjavík and a detachment of troops sent to

Akureyri Akureyri (, locally ) is a town in northern Iceland. It is Iceland's fifth-largest municipality, after Reykjavík, Hafnarfjörður, Reykjanesbær and Kópavogur, and the largest town outside Iceland's more populated southwest corner. Nickn ...

. However, the initial invasion force was ill-equipped, only partially trainedBittner 41. and insufficient to the task of occupation and defence of the island. On 17 May, 4,000 additional troops of the

British Army The British Army is the principal land warfare force of the United Kingdom, a part of the British Armed Forces along with the Royal Navy and the Royal Air Force. , the British Army comprises 79,380 regular full-time personnel, 4,090 Gurk ...

arrived to relieve the marines. In July elements of the

2nd Canadian Division The 2nd Canadian Division (2 Cdn Div; french: 2e Division du Canada) is a formation of the Canadian Army in the province of Quebec, Canada. The present command was created 2013 when Land Force Quebec Area was re-designated. The main unit housed ...

and

3rd Canadian Division The 3rd Canadian Division is a formation of the Canadian Army responsible for the command and mobilization of all army units in the provinces of Manitoba, Saskatchewan, Alberta and British Columbia, as well as all units extending westwards from th ...

were landed. Commonwealth occupation forces eventually totalled 25,000 infantry with support elements from the

Royal Air Force The Royal Air Force (RAF) is the United Kingdom's air and space force. It was formed towards the end of the First World War on 1 April 1918, becoming the first independent air force in the world, by regrouping the Royal Flying Corps (RFC) an ...

, Royal Navy and

Royal Canadian Navy The Royal Canadian Navy (RCN; french: Marine royale canadienne, ''MRC'') is the naval force of Canada. The RCN is one of three environmental commands within the Canadian Armed Forces. As of 2021, the RCN operates 12 frigates, four attack submar ...

. One year after the invasion, military forces from the still officially neutral

United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territori ...

were stationed on the island by agreement with the Icelandic government, relieving the bulk of British ground forces. U.S. forces grew considerably after the U.S. entered the war on 11 December 1941, reaching up to 30,000 Army (including

Air Force An air force – in the broadest sense – is the national military branch that primarily conducts aerial warfare. More specifically, it is the branch of a nation's armed services that is responsible for aerial warfare as distinct from an ...

personnel) and Navy personnel at any one time. The RAF and RCAF continued to operate from two Royal Air Force stations through to the end of the war.

Occupation

British occupation

Under Brigadier George Lammie, ''Alabaster Force'' was formed to permanently occupy Iceland and fortify the island's defence. On 17 May 1940, the British 146th Infantry Brigade, arrived to relieve the Royal Marine invasion force, who left 19 May. Stretched thin, Brigadier Lammie requested additional forces of the HQ of the

49th (West Riding) Infantry Division The 49th (West Riding) Infantry Division was an infantry division of the British Army. The division fought in the First World War in the trenches of the Western Front, in the fields of France and Flanders. During the Second World War, the divis ...

, a Territorial Army (TA) formation under Major-General Henry Curtis, and the 147th Brigade arrived on 26 May, followed by numerous convoys of troops and supplies. Elements based in Akureyri formed the Tactical School, Winter Warfare Course which trained the 49th into a Mountain/Arctic division. Additional reinforcements over the course of the summer included field artillery, Anti-Aircraft guns, Bren carriers, engineer and construction units, and support forces. The final British ground reinforcements, an infantry battalion and artillery battery, arrived in June 1941. By July 1941, there were over 25,000 British troops on the island. Construction of airfields (including what became

Reykjavík Airport Reykjavík Airport ( Icelandic: ''Reykjavíkurflugvöllur'') is the main domestic airport serving Reykjavík, the capital of Iceland, located about from the city centre. Having shorter runways than the city's larger international airport Kef ...

), harbours, roads and other facilities began immediately. Hvalfjörður became a naval base for merchant escort and antisubmarine forces, with extensive facilities including a mine depot, pier and jetties, accommodation, a fresh water system, ammunition storage, a fleet bakery, bulk naval storage warehouse, recreation facilities, a direction-finding station and a fuel farm. The facility was protected by a minefield, anti-submarine gate and boom across the fjord, coastal guns, AA batteries, and anti-submarine trawlers. The Royal Navy Fleet Air Arm 701 Squadron provided initial air support, and the army built two airfields, RAF Kaldadarnes and RAF Reykjavik, home to several RAF and RCAF squadrons until the end of the war. As naval base facilities grew Coastal Command aircraft were stationed for patrol, reconnaissance, and antisubmarine duties. The cruiser and battleship visited Akureyri harbour in May 1941, just prior to their sea battle with the German warships and in the Straits of Denmark between Greenland and Iceland. The hospital ship ''Leinster'' based at Akureyri harbour sailed on 24 May to care for the wounded after the destruction of in the battle. Two hospitals were also built, No. 50 General Hospital was built at Reykjavik and operated from June 1940 to March 1942. After this it became the RAF No. 11 General Hospital, and operated until 1946 with RAF personnel. No. 30 General Hospital operated from July 1940 to September 1941. At the end of hostilities most British facilities were turned over to the Icelandic government. 199 Commonwealth soldiers are buried in Iceland in six cemeteries cared for by the

Commonwealth War Graves Commission The Commonwealth War Graves Commission (CWGC) is an intergovernmental organisation of six independent member states whose principal function is to mark, record and maintain the graves and places of commemoration of Commonwealth of Nations m ...

** 70th Infantry Brigade *** 10th Battalion,

Durham Light Infantry The Durham Light Infantry (DLI) was a light infantry regiment of the British Army in existence from 1881 to 1968. It was formed in 1881 under the Childers Reforms by the amalgamation of the 68th (Durham) Regiment of Foot (Light Infantry) and t ...

*** 11th Battalion, Durham Light Infantry *** 1st Battalion,

Tyneside Scottish Tyneside Scottish is an honour title which has been held by a variety of British Army units since 1914. The Regiments which have held the title are the Northumberland Fusiliers, Durham Light Infantry, Black Watch and Royal Artillery. The Tynesid ...

** 147th Infantry Brigade *** 1/6th Battalion,

Duke of Wellington's Regiment The Duke of Wellington's Regiment (West Riding) was a line infantry regiment of the British Army, forming part of the King's Division. In 1702, Colonel George Hastings, 8th Earl of Huntingdon, was authorised to raise a new regiment, which he di ...

*** 1/7th Battalion, Duke of Wellington's Regiment *** 1/5th Battalion,

West Yorkshire Regiment ) , march = ''Ça Ira'' , battles = Namur FontenoyFalkirk Culloden Brandywine , anniversaries = Imphal (22 June) The West Yorkshire Regiment (Prince of Wales's Own) (14th Foot) wa ...

** 146th Infantry Brigade *** 4th Battalion,

Lincolnshire Regiment The Royal Lincolnshire Regiment was a line infantry regiment of the British Army raised on 20 June 1685 as the Earl of Bath's Regiment for its first Colonel, John Granville, 1st Earl of Bath. In 1751, it was numbered like most other Army regiments ...

*** 1/4th Battalion, King's Own Yorkshire Light Infantry ***

Hallamshire Battalion The Hallamshire Battalion was an infantry battalion of the York and Lancaster Regiment, part of the British Army in existence from 1859. History Formation and early history Formed in 1859 as The Hallamshire Volunteer Rifle Corps with its headquart ...

York and Lancaster Regiment The York and Lancaster Regiment was a line infantry regiment of the British Army that existed from 1881 until 1968. The regiment was created in the Childers Reforms of 1881 by the amalgamation of the 65th (2nd Yorkshire, North Riding) Regiment ...

** Divisional Troops *** 2nd Battalion,

Princess Louise's Kensington Regiment The Kensington Regiment (Princess Louise's) is a unit of the British Army, which originated in the Volunteer Rifle Corps' movement of the 1850s. In 1908 it became a battalion of the London Regiment in the Territorial Force. It was an infantry re ...

*** 69th (West Riding) Field Regiment, Royal Artillery *** 143rd (Kent Yeomanry) Field Regiment, Royal Artillery *** 294th Field Company, Royal Engineers *** 756th Field Company, Royal Engineers *** 757th Field Company, Royal Engineers *** 289th Field Park Company, Royal Engineers *** 23rd Bridging Platoon, Royal Engineers *** 49th (West Riding) Divisional Signals, Royal Corps of Signals

* * * * * * * HMS ''Lancashire'' * * * * * HMT ''Franconia'' * HMT ''Lancastria'' * * * HMHS ''Leinster''

* No. 48 Squadron * No. 53 Squadron * No. 86 Squadron * No. 98 Squadron * No. 120 Squadron * No. 204 Squadron * No. 209 Squadron * No. 210 Squadron * No. 221 Squadron * No. 269 Squadron * No. 279 Squadron * No. 280 Squadron * No. 330 Squadron * No. 612 (County of Aberdeen) Squadron * No. 1407 (Meteorological) Flight * RAF No. 11 General Hospital

Canadian occupation

On 18 May 1940, Britain requested Canada to garrison and defend Iceland with the

, along with air force, anti-air, shore battery and coastal defence elements. "Z" Force, led by Brigadier L. F. Page, with part of his brigade headquarters and

The Royal Regiment of Canada , battle_honours = See #Battle honours , website = , identification_symbol = , identification_symbol_label = Tactical recognition flash , nickname = Royals , battles ...

embarked the on June 10, and landed at Reykjavik on 16 June 1940. The remainder of the 2,659 man "Z" Force, comprising

Les Fusiliers Mont-Royal Les Fusiliers Mont-Royal is a Primary Reserve infantry regiment of the Canadian Army. Lineage File:FMR Colours.jpg, The regimental colour of Les Fusiliers Mont-Royal. File:FMR Camp Flag.jpg, The camp flag of Les Fusiliers Mont-Royal. File:Fusi ...

, The Cameron Highlanders of Ottawa (M.G.), a brigade signal section and details, arrived on 9 July. Canadian forces dispersed across the island and initiated work on defence positions, and preparations for the building of the aerodrome in

, building roads, improving harbours, establishing guard over strategic assets, and setting up coast watch stations. On 9 February 1941, Canadian forces engaged a single German aircraft overflying the island. Owing to pressing needs elsewhere including Canadian commitments to the defence of Britain, and to providing garrison troops in the West Indies, it was agreed to redeploy Canadian forces. Force headquarters and The Royal Regiment sailed for England on 31 October and rejoined the main body of the

. The Camerons, who had been allotted to the 3rd Division, spent the winter on the island and departed for England on 28 April 1941. They were temporarily replaced by British garrison forces, until 7 July 1941, when the defence of Iceland was transferred from Britain to the (still officially neutral)

, by agreement with Iceland. Canadian army, navy and air force units were dispatched to and continued to operate in and around Iceland throughout the war. No. 162 Squadron RCAF was seconded to RAF Coastal Command and stationed at RAF Reykjavik from January 1944 to cover the mid-ocean portion of the North Atlantic shipping route. Aircraft from this squadron attacked two U-boats in 1944, sinking on 17 April 1944.

Canadian Army The Canadian Army (french: Armée canadienne) is the command responsible for the operational readiness of the conventional ground forces of the Canadian Armed Forces. It maintains regular forces units at bases across Canada, and is also res ...

4th Canadian Infantry Brigade The 4th Canadian Infantry Brigade was an infantry brigade of the Canadian Army active during World War I and World War II. Raised in 1915, the brigade formed part of the 2nd Canadian Division and fought on the Western Front between 1916 an ...

The Royal Regiment of Canada , battle_honours = See #Battle honours , website = , identification_symbol = , identification_symbol_label = Tactical recognition flash , nickname = Royals , battles ...

infantry battalion **

infantry battalion ** The Cameron Highlanders of Ottawa infantry battalion

* * * Merchant Navy * * * * ''Stonepool'' * ''Dracola'' * ''Yearwood''

Royal Canadian Air Force The Royal Canadian Air Force (RCAF; french: Aviation royale canadienne, ARC) is the air and space force of Canada. Its role is to "provide the Canadian Forces with relevant, responsive and effective airpower". The RCAF is one of three environm ...

* No. 162 Squadron RCAF * RCAF Marine Craft ''Beaver'' * RCAF Marine Craft ''Eskimo''

United States occupation

Britain needed her troops elsewhere and requested that US forces occupy the island. The US agreed on 16 June 1941. The

1st Provisional Marine Brigade The 1st Provisional Marine Brigade was a Marine infantry brigade of the United States Marine Corps (USMC) that existed periodically from 1912 to 1950. It was an ad hoc unit formed for specific operations and not considered a "permanent" USMC unit ...

of 194 officers and 3,714 men from

San Diego San Diego ( , ; ) is a city on the Pacific Ocean coast of Southern California located immediately adjacent to the Mexico–United States border. With a 2020 population of 1,386,932, it is the eighth most populous city in the United State ...

under the command of Brigadier-General John Marston sailed from Charleston, South Carolina, on 22 June to assemble as Task Force 19 (TF 19) at

Argentia, Newfoundland Argentia ( ) is a Canadian commercial seaport and industrial park located in the Town of Placentia, Newfoundland and Labrador. It is situated on the southwest coast of the Avalon Peninsula and defined by a triangular shaped headland which r ...

: TF 19 sailed on 1 July. Britain failed to persuade the

Althing The Alþingi (''general meeting'' in Icelandic, , anglicised as ' or ') is the supreme national parliament of Iceland. It is one of the oldest surviving parliaments in the world. The Althing was founded in 930 at (" thing fields" or "assemb ...

to approve an American occupation force, but with TF 19 anchored off Reykjavík that evening Roosevelt gave approval for the invasion. The

United States Marine Corps The United States Marine Corps (USMC), also referred to as the United States Marines, is the maritime land force service branch of the United States Armed Forces responsible for conducting expeditionary and amphibious operations through combi ...

commenced landing on 8 July, and disembarkation was completed on 12 July. On 6 August, the

United States Navy The United States Navy (USN) is the maritime service branch of the United States Armed Forces and one of the eight uniformed services of the United States. It is the largest and most powerful navy in the world, with the estimated tonnage ...

established

Naval Air Station Keflavik Naval Air Station Keflavik (NASKEF) was a United States Navy station at Keflavík International Airport, Iceland, located on the Reykjanes peninsula on the south-west portion of the island. NASKEF was closed on 8 September 2006, and its facilitie ...

at Reykjavík with the arrival of Patrol Squadron VP-73

PBY Catalina The Consolidated PBY Catalina is a flying boat and amphibious aircraft that was produced in the 1930s and 1940s. In Canadian service it was known as the Canso. It was one of the most widely used seaplanes of World War II. Catalinas served w ...

s and VP-74

PBM Mariner The Martin PBM Mariner was an American patrol bomber flying boat of World War II and the early Cold War era. It was designed to complement the Consolidated PBY Catalina and PB2Y Coronado in service. A total of 1,366 PBMs were built, with the fi ...

United States Army The United States Army (USA) is the land warfare, land military branch, service branch of the United States Armed Forces. It is one of the eight Uniformed services of the United States, U.S. uniformed services, and is designated as the Army o ...

personnel began arriving in Iceland in August.

US Marines The United States Marine Corps (USMC), also referred to as the United States Marines, is the maritime land force service branch of the United States Armed Forces responsible for conducting expeditionary and amphibious operations through combi ...

(BG John Marston) ** 5th Defense Battalion **

6th Marine Regiment (United States) The 6th Marine Regiment (also referred to as "6th Marines") is an infantry regiment of the United States Marine Corps based at Marine Corps Base Camp Lejeune, North Carolina. The regiment falls under the command of the 2nd Marine Division of th ...

*** 1st Battalion 6th Marines ***

2nd Battalion 6th Marines 2nd Battalion, 6th Marines (2/6) is an infantry battalion in the United States Marine Corps based out of Camp Lejeune, North Carolina. Also known as "The Ready Battalion" or "2/6 Spartans", it consists of approximately 800 Marines and Sailors and ...

*** 3rd Battalion 6th Marines **

2nd Battalion 10th Marines 2nd Battalion 10th Marines (2/10) is an artillery battalion of the United States Marine Corps comprising three cannon batteries, two rocket batteries, and a headquarters battery. The battalion is stationed at Marine Corps Base Camp Lejeune, Nor ...

** A Company of the 2nd Tank Battalion ** A Company of the

2nd Service Battalion The 2nd Supply Battalion is a battalion of the United States Marine Corps that specializes in distributing and warehousing military goods and equipment. They are based out of Marine Corps Base Camp Lejeune, North Carolina and they fall under the ...

US Army The United States Army (USA) is the land service branch of the United States Armed Forces. It is one of the eight U.S. uniformed services, and is designated as the Army of the United States in the U.S. Constitution.Article II, section 2, cla ...

* 5th Infantry Division (MG Charles H. Bonesteel Jr.) ** Division Headquarters *** 2nd Infantry Regiment *** 10th Infantry Regiment *** 11th Infantry Regiment ** 5th Division Artillery *** 19th Field Artillery Battalion, (18x 105mm Howitzers) *** 46th Field Artillery Battalion, (18x 105mm Howitzers) *** 50th Field Artillery Battalion, (18x 105mm Howitzers) *** 21st Field Artillery Battalion, (18x 155mm Howitzers) ** 7th Combat Engineer Battalion ** 5th Reconnaissance Troop (Mechanized) ** 5th Medical Battalion ** Special Troops *** 705th Ordnance Light Maintenance Company *** 5th Quartermaster Company *** 5th Signal Company *** Military Police Platoon *** Band * 61st Coast Artillery

US Navy The United States Navy (USN) is the maritime service branch of the United States Armed Forces and one of the eight uniformed services of the United States. It is the largest and most powerful navy in the world, with the estimated tonnage ...

* Naval Operating Base Iceland (RADM

James L. Kauffman James Laurence Kauffman (18 April 188721 October 1963) was a highly decorated officer in the United States Navy with the rank of Vice Admiral. He distinguished himself as Commanding officer of destroyer during World War I and received the Navy ...

) ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** VP-73 (

)

US Army Air Force The United States Army Air Forces (USAAF or AAF) was the major land-based aerial warfare service component of the United States Army and ''de facto'' aerial warfare service branch of the United States during and immediately after World War II ...

33rd Pursuit Squadron The 33rd Special Operations Squadron is a United States Air Force unit, assigned to the 27th Special Operations Group at Cannon Air Force Base, New Mexico. The squadron operates the General Atomics MQ-9 Reaper. The unit is one of the oldest squ ...

24th Special Operations Wing The 24th Special Operations Wing (Air Force Special Tactics) is a United States Air Force active-duty wing that was activated on 12 June 2012. Its headquarters is at Hurlburt Field, Florida and it has component groups located in North Carolina, G ...

Outcome

Britain invaded to forestall a German occupation, to provide a base for naval and air patrols, and to protect merchant shipping lanes from North America to Europe. In this the invasion and occupation was successful. However, the presence of British, Canadian, and US troops had a lasting impact on the country. Foreign troop numbers over the period of occupation were as follows: * 1940 (after May): 20,000 * 1941: 25,000 * 1942: 30,000 * 1943: 30,000 * 1944: 15,000 * 1945: 7,000 In some years this equaled 25% of the population or almost 50% of the native male population.. The troops outnumbered the group of Icelandic marriageable females. Icelanders were and remain sharply divided about the war and occupation - what is sometimes referred to as "blessað stríðið" or "the Lovely War." Some point to the subsequent economic revival, others to loss of sovereignty and social upheaval. The occupation required the building of a network of roads, hospitals, harbours, airfields and bridges across the country, and this did have enormous positive economic impact. On the other hand, Icelanders severely censured the sexual relationships between troops and local women, which were causing considerable controversy and political turmoil. Women were often accused of prostitution and of being traitors. 255 children were born from these liaisons, the ''ástandsbörn'' (children of the situation). In 1941, the Icelandic Minister of the Judiciary investigated "The Situation" ('' Ástandið''), and the police tracked more than 500 women who had been having sex with the soldiers. Many were upset that the foreign troops were "taking away" women, friends, and family. In 1942 two facilities opened to house such women who slept with the soldiers. Both closed within a year, after investigations determined that most liaisons were consensual. About 332 Icelandic women married foreign soldiers. During the occupation, on 17 June 1944, Iceland declared itself a republic, and while continuing to cooperate with the British, Canadian, and American military they remained officially neutral throughout the war. As the war drew to a close the Keflavík Agreement signed in 1946 between the United States and the Republic of Iceland stipulated that the American army would leave the country within six months, and Iceland would take possession of the Keflavík Airport. This did not happen for many decades and a substantial US military presence remained in Iceland until 30 September 2006. Although the British action was to forestall any risk of a German invasion, there is no evidence that the Germans had an invasion planned. There was however German ''interest'' in seizing Iceland. In a postwar interview with an American,

Walter Warlimont Walter Warlimont (3 October 1894 – 9 October 1976) was a German staff officer during World War II. He served as deputy chief of the Operations Staff, one of departments in the ''Oberkommando der Wehrmacht'' (OKW), the Armed Forces High Comman ...

claimed, "Hitler definitely was interested in occupying Iceland prior to ritishoccupation. In the first place, he wanted to prevent "anyone else" from coming there; and, in the second place, he also wanted to use Iceland as an air base for the protection of our submarines operating in that area". After the British invasion, the Germans drew up a report to examine the feasibility of seizing Iceland,

Operation Ikarus Operation Ikarus (''Unternehmen Ikarus'' or ''Fall Ikarus'' in German) was a World War II German plan to invade Iceland, which had been occupied by British forces during Operation Fork in 1940. The plan was never realized. The purpose of the Bri ...

. The report found that while an invasion could be successful, maintaining supply lines would be too costly and the benefits of holding Iceland would not outweigh the costs (there was, for instance, insufficient infrastructure for aircraft in Iceland).