Indeed, this small Nordic country with only 315,000 inhabitants has played a remarkably prominent role at important junctures of history. Four of these periods come to mind:
1) The Icelandic eruption of 1783 led to "the year without summer" for much of Europe and the resulting famine contributed to the civil unrest in France. Some historians go so far as to say the French Revolution was a direct result of the volcanic eruption on Iceland.
2) The invasion and occupation of Iceland in World War II marked the transfer of naval power from the United Kingdom to the United States. While Great Britain invaded the island in 1940 to preempt a German invasion, the British quickly recognized they were unable to maintain their occupation force on the island. By 1941, American forces were occupying the island, and the new hegemon in the neighborhood was quickly recognized.
3) The Cod Wars between Iceland and Great Britain was one of only two major conflicts between NATO countries and nearly led to a full-fledged war between the two island nations. The conflict centered on fishing rights in Iceland's coastal waters and eventually led to international law regarding fishing rights and the EU's Common Fisheries Policy. Lingering concern about Icelandic fishing rights continues to be the biggest reason why Iceland remains outside the EU.
4) Beginning in 2003, Icelandic banks and investors were on the cutting edge of a global financial sector that used complex models, leveraging, and financial products to make enormous profits. But by 2006, it was already becoming apparent that the incredible explosion of the Icelandic banking sector was not sustainable and the island was on the leading edge of the global economic meltdown.
And now, citizens on both sides of the Atlantic have again remembered the island in the middle of the North Atlantic. It is just unfortunate that the lovely mid-Atlantic country always seems to remind us of its presence in such unpleasant ways.