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
1985: The Year of the Spy tensions between the United States and the Soviet Union at a crucial point in the Cold War; Mikhail Gorbachev rose to power as Soviet general secretary in the same year. These high-publicity cases added to the American public's suspicion of the Soviets at a time when the Soviet Union was transitioning into new leadership and reforms under Gorbachev. Even Gorbachev's meeting with President Ronald Reagan at the November Geneva Summit did little to reduce uncertainty as to the future of U.S.-Soviet relations. The arrest of so many foreign spies working within the United States Intelligence Community sparked two demands among