During World War II, Iceland, then a sovereign kingdom in personal union with Denmark, declared neutrality. However, following Germany’s invasion of Denmark in April 1940, contact with Denmark was severed, prompting Iceland to take control of its own foreign affairs. On May 10, 1940, Britain invaded Iceland to prevent a German takeover, citing the island’s strategic importance in the North Atlantic. Although Iceland protested the violation of its neutrality, the British occupation proceeded without resistance.
When British troops arrived in Reykjavík in May 1940, their presence led to significant social disruption in Iceland, particularly in the capital. The arrival of thousands of soldiers led to interactions between young Icelandic women and the soldiers, causing tension in Icelandic society. Relationships, both real and rumored, between local women and British soldiers became a source of controversy. This phenomenon, which came to be known as Ástandið ("the condition" or "the situation"), created friction between Icelandic men and the foreign troops, as well as concerns about morality.
There were reports of increased prostitution during this period, further fueling the controversy. Many Icelandic women who formed relationships with Allied soldiers later married them, and some gave birth to children who were given the patronymic Hansson ("his son"), indicating that their fathers were unknown or had left Iceland. Some of these children also had English surnames.
The British were soon replaced by U.S. forces in July 1941, with Iceland agreeing to let the U.S. handle its defense. At the height of the war, there were as many as 40,000 American troops stationed in Iceland, outnumbering the local male population. Despite the presence of foreign troops, Iceland remained officially neutral throughout the war. Economically, the occupation ended unemployment and raised wages, transforming Iceland from one of Europe’s poorest countries into a more prosperous nation by the war’s end.