History
The Bay of Smokes
Reykjavik was the first permanent settlement in Iceland. It was founded by a Norwegian chieftain named Ingólfur Arnarson around 870 AD, when, as the story goes, he threw two pillars overboard and vowed to settle wherever they landed. Eventually they were found on the southwestern peninsula, now known as Reykjanesskagi, and at that site Reykjavik was born.
 
Ingólfur Arnarson was followed by many other Norse chieftains, along with their families and Celtic slaves. Although Icelandic culture is considered primarily Norse, the Celtic influence exists in ancient poetry and music, and in the physical features of the inhabitants.
 
In 930, a commonwealth was established, ruled by a parliament called the Alþingi, or ‘The Althing’ in English. Laws were not written down, but instead simply memorized by an elected official called the Lawspeaker. Neither was there any law enforcement agency; laws were enforced by the people. Unfortunately, this proved to be an environment conducive to blood feuds.
 
As blood feuds turned to bitter civil war, the Althing found its power waning. Eventually, after many decades of fighting, the chieftains of Iceland swore fealty to the king of Norway. Iceland stayed under Norwegian rule until 1380, when the Royal House of Norway died out. It was at this time that Iceland came under Danish rule.
 
Denmark ruled Iceland somewhat harshly until the Act of Union in 1918, in which Denmark recognized Iceland as a wholly sovereign state united with the Danish under one king.
 
This arrangement lasted until 1940, when the Nazi occupation of Denmark severed communication between the two countries. In response, the Althing took matters into its own hands and declared neutrality, enforcing its borders against both Allied and Nazi incursions.
 
Iceland was subsequently occupied by British and American forces. At the height of the occupation, ~40,000 American soldiers were stationed on the island, outnumbering grown Icelandic men.
 
On June 17, 1944, Iceland formally became a republic, even while Denmark was still occupied by the Germans. Despite this, King Christian X relayed a message of congratulations to the Icelandic people.
 
 
Photo from www.geostudy.zoomshare.com . Creator unknown.