The Napoleonic Wars had a significant impact on Iceland's history through Denmark's defeat and the Treaty of Kiel. Denmark, which had ruled Iceland for centuries, was drawn into the wars as an ally of Napoleon. When Denmark was defeated in 1814, the Treaty of Kiel forced it to cede Norway to Sweden. Although Iceland had historically been under Norway's control before the formation of the Danish-Norwegian union, the treaty did not extend to Iceland, Greenland, or the Faroe Islands. These territories remained under Danish rule, despite Norway’s transfer to Swedish control.
For Iceland, the Treaty of Kiel marked a continuation of Danish governance, but it underscored the island's status as a distant and somewhat neglected dependency within the Danish realm. The event did not immediately lead to significant changes for Iceland, though it set the stage for later movements toward self-governance in the 19th century. In this context, Denmark's weakening position in Europe eventually contributed to Iceland’s own push for independence, which culminated in Iceland becoming a sovereign state under Danish rule in 1918, and later a fully independent republic in 1944.