Iceland may be a small nation of just under 400,000 inhabitants, but its geopolitical importance is growing rapidly in a world reshaped by global power rivalries. This was the clear message from Icelandic President Halla Tómasdóttir during her recent state visit to Sweden, where she met with Swedish Prime Minister Ulf Kristersson (Moderaterna).
Speaking at a press conference in Rosenbad, Tómasdóttir reflected on how Iceland was once seen as an isolated island in the North Atlantic. “We would say that we were an island far away and far north in the Atlantic,” she said, before highlighting how global shifts have moved Iceland to the center of attention. Positioned between the USA, Russia, and China, Iceland is now regarded as a strategic hub in Arctic security dynamics.
Strong U.S. ties and Arctic security cooperation
Iceland’s role in transatlantic security is anchored by the U.S. military presence at Keflavik Air Base, a legacy of Cold War defense strategies that remains crucial today. Tómasdóttir underscored the need for strong ties with the United States, “regardless of who leads the country.”
Iceland’s strategic relevance has also increased amid rising tensions in the Arctic region, with growing military interest from both Russia and NATO allies. Alongside Greenland and northern Scotland, Iceland is viewed as a critical point in Arctic defense infrastructure.
Sweden and Iceland reinforce partnership
The state visit was marked by ceremonial grandeur—from a horse-drawn carriage procession to Icelandic flags fluttering beside Swedish ones on Norrbro in Stockholm. But the heart of the visit was focused on security cooperation, climate action, and defending democratic values.
Kristersson praised the two countries’ “bold ambitions” in areas ranging from the green transition to human rights advocacy. The Swedish Prime Minister also hinted at future developments, expressing support for Iceland should it pursue EU membership, which may be decided in a 2027 referendum.

A non-partisan voice in a turbulent world
Despite holding a largely ceremonial role, Tómasdóttir has become a symbol of Iceland’s emerging global identity. With a background in business and civil society, including stints at Pepsi and several investment and mission-driven organizations, she brings a non-traditional leadership style to the presidency.
“We want to be friends with everyone, we do not want to break off any relationships,” she said, emphasizing diplomacy and cooperation amid growing global polarization.

From Viking roots to modern alliances
The enduring connection between Sweden and Iceland dates back to the Viking Age, but today’s alliance is forged in the shared pursuit of security, sustainability, and sovereignty. As Tómasdóttir summed up: “We are small countries with bold ambitions.”
Kristersson, visibly moved, responded: “That was well said, I will borrow that.”