How would a British Empire handle Iceland in a three-way Cold War?
Short answerCarefully. Iceland's strategic position would let it seek support from Britain, the United States, or the Soviet Union, making simple economic coercion risky.
NotesIceland's location would be decisive in this alternate Cold War. Sitting between three rival powers would turn the island into exceptionally valuable North Atlantic real estate. British economic pressure could therefore backfire by driving Iceland toward American or Soviet support. Basing geography would give the small state leverage over much larger naval powers.