The history of Iceland allows for a deep exploration into how a remote volcanic rock in the North Atlantic became one of the world’s most prosperous and socially advanced nations.

Iceland’s story is a remarkable saga of human resilience against the elements—a narrative that begins with solitary monks and Viking explorers, traverses through centuries of isolation and foreign rule, and culminates in a vibrant modern republic.

I. The Geological and Mythical Dawn

Before humans arrived, Iceland was—and remains—a geological anomaly. It is one of the youngest landmasses on Earth, formed approximately 20 million years ago by a series of volcanic eruptions on the Mid-Atlantic Ridge. This “hotspot” created a land characterized by extreme contrasts: massive glaciers sitting atop active volcanic fissures.

The Myth of Thule

For the ancient world, Iceland was shrouded in mystery. In the 4th century BC, the Greek explorer Pytheas of Massalia wrote of a land called “Ultima Thule,” located six days’ sail north of Britain, where the sea turned to “curdled ice.” While scholars debate whether Thule was Iceland, Norway, or the Shetland Islands, the myth established the North Atlantic as a frontier of the unknown.

The Papar: The First Arrivals

Long before the Vikings, small groups of Irish monks known as Papar (the “fathers”) sought spiritual isolation in the North Atlantic. Medieval Icelandic records like the Íslendingabók (Book of Icelanders) mention that when the Norsemen arrived, they found bells, books, and crosses, suggesting these Christian hermits had been there first. However, the Papar left no permanent settlements, reportedly departing because they did not wish to live among heathens.

II. The Age of Settlement (874–930)

The true recorded history of Iceland begins in the late 9th century. This was the era of the Great Viking Migrations, driven by a shortage of arable land in Scandinavia and the desire to escape the growing central authority of King Harald Fairhair in Norway.

The First Permanent Settlers

While several explorers (such as Naddoddur, who named it Snæland or Snowland, and Hrafna-Flóki, who gave it the name Ísland) visited earlier, Ingólfur Arnarson is credited as the first permanent settler in 874 AD.

Following Norse tradition, Ingólfur threw his öndvegissúlur (high-seat pillars) overboard as he approached the coast, vowing to settle wherever the gods washed them ashore. He spent years searching for them, eventually finding them in a bay with rising steam from geothermal springs. He named the place Reykjavík (“Smoky Bay”).

Landnám: The Land-Taking

Over the next 60 years, approximately 10,000 to 20,000 people arrived. While the majority were Norse, genetic studies and historical records show a significant Celtic influence. Many Norse settlers had spent time in Ireland and Scotland, bringing with them Gaelic wives and thralls (enslaved people). This mixture of Norse warrior culture and Celtic tradition helped shape the unique Icelandic identity.

III. The Icelandic Commonwealth (930–1262)

As the population grew, the need for a formal legal system became apparent. In 930 AD, the settlers established the Althing at Þingvellir (the “Parliament Plains”).

The World’s Oldest Parliament

The Althing was a unique democratic experiment. It had no king or central executive; instead, it was a meeting of chieftains (Goðar) who made laws and settled disputes.

• The Lawspeaker: An elected official who had to memorize and recite one-third of the law each year from the “Law Rock.”

• The Goðar: Chieftains who represented their followers. Unlike feudal lords, their power was not strictly territorial; a farmer could choose which Goði to follow.

The Christianization (1000 AD)

One of the most pivotal moments in the Commonwealth era occurred in the year 1000 AD. Pressure from the Norwegian King Olaf Tryggvason threatened to split Iceland between pagans and Christians. To avoid civil war, the Lawspeaker Þorgeir Ljósvetningagoði was tasked with deciding the nation’s faith. After meditating under a fur blanket for a day and a night, he emerged with a compromise: Iceland would officially become Christian, but people could still practice pagan rituals in private.

The Saga Age

This period (roughly 930–1030) is known as the Saga Age. It provided the source material for the famous Icelandic Sagas—literary masterpieces that detail the blood feuds, voyages, and legal battles of the early settlers. Figures like Egill Skallagrímsson and Grettir the Strong became national icons, embodying the rugged independence of the era.

IV. The Age of the Sturlungs and Submission (1220–1262)

The lack of a central executive eventually led to the Commonwealth’s downfall. By the 13th century, power had concentrated in the hands of a few wealthy families.

Civil War

The Sturlung Age (named after the powerful Sturlung family) was a period of violent internal strife. Chieftains fought for dominance, and the chaos allowed the Norwegian King Haakon IV to intervene. In 1262, exhausted by war, the Icelandic leaders signed the Old Covenant, swearing allegiance to the Norwegian crown in exchange for peace and regular trade. This ended Iceland’s era of independence for nearly 700 years.

V. Centuries of Hardship (1380–1800)

Following the death of the Norwegian royal line, Iceland, along with Norway, fell under the control of the Danish Crown in 1380. This began a long period of economic and social decline.

The Reformation and Trade Monopoly

• 1550: The Danish King Christian III forcibly introduced the Reformation. The last Catholic bishop, Jón Arason, was beheaded, and the Church’s vast lands were seized by the Danish Crown.

• 1602: Denmark established a Trade Monopoly, prohibiting Icelanders from trading with anyone except authorized Danish merchants. This stifled economic growth and kept the population in poverty.

Natural Disasters and Famine

The 18th century was perhaps the darkest in Iceland’s history.

• 1783 – The Laki Eruption: A massive volcanic fissure erupted for eight months, releasing a toxic haze that killed 80% of the livestock and led to the “Haze Famine.”   

• The Toll: Roughly 25% of the population (about 10,000 people) died from starvation or disease. Conditions were so dire that the Danish government seriously considered evacuating the entire population to Denmark.

VI. The National Awakening (19th Century)

 

In the wake of the French Revolution and the Romantic movement in Europe, a new sense of national identity began to stir in Iceland.

Jón Sigurðsson

The movement for independence was led by Jón Sigurðsson, a scholar based in Copenhagen. He argued that Iceland should regain its ancient rights. Unlike many other independence movements, Iceland’s was largely intellectual and legalistic rather than military. 

• 1843: The Althing was restored as a consultative assembly.  

1874: On the 1,000th anniversary of settlement, King Christian IX visited Iceland and granted the country a constitution and control over its own finances.  

 

 

VII. The Path to Sovereignty (1918–1944)

The early 20th century saw rapid modernization. The fishing industry shifted from rowing boats to steam trawlers, and the first automobiles arrived.

The Act of Union (1918)

On December 1, 1918, Iceland became a sovereign state in a personal union with Denmark. They shared the same king, but Iceland was now a separate kingdom with its own flag and government. This agreement was set to be reviewed after 25 years.

World War II

When Nazi Germany occupied Denmark in 1940, the link between the two countries was severed.  

1. British Occupation: British forces occupied Iceland in 1940 to prevent German encroachment.

2. American Protection: In 1941, the United States took over the defense of Iceland, bringing massive infrastructure projects (like Keflavík Airport) and an influx of capital that modernized the economy almost overnight.

The Republic is Born

On June 17, 1944, while Denmark was still under occupation, Icelanders voted overwhelmingly in a referendum to become a republic. The inauguration took place at Þingvellir, returning the nation’s sovereignty to the very place where the Althing was founded over a millennium prior.