Foreign relations of Iceland already being prepared. U.S. officials have since then argued that Iceland is in no need of a military presence. NATO allies since then conduct air policing after the U.S. Air Force withdrawal. Foreign relations of Iceland Iceland's closest relations are with Norway and other Nordic states, Canada and the United States. Iceland hosted the historic 1986 Reagan-Gorbachev summit in Reykjavík, which set the stage for the end of the Cold War. Iceland's principal historical international disputes involved disagreements over fishing rights. Conflict with the United Kingdom led to the so-called Cod Wars in 1952–56 because of the extension of the
Presidency of Ronald Reagan troops since the end of the Vietnam War. The administration also created controversy by granting aid to paramilitary forces seeking to overthrow leftist governments, particularly in war-torn Central America and Afghanistan. Specifically, the Reagan administration engaged in covert arms sales to Iran to fund Contra rebels in Nicaragua that were fighting to overthrow their nation's socialist government; the resulting scandal led to the conviction or resignation of several administration officials. During Reagan's second term, he sought closer relations with Soviet leader Mikhail Gorbachev, and the two leaders signed a major arms control agreement known as the INF Treaty. Leaving office