Iceland in the Cold War due to clerical errors. Icelandic courts approved warrants by the Icelandic police to tap the phones of prominent Icelandic communists on six occasions during the period 1949-1968: During the 12-year reign of the , US-Icelandic relations were at their calmest. The government initiated major economic reforms that liberalized Iceland's economy and reduced Iceland's dependence on barter trade with the USSR. The Cod Wars were a series of confrontations between the United Kingdom and Iceland regarding fishing rights in the North Atlantic. Each of the disputes ended with Iceland's victory. The final Cod War concluded with a highly favorable agreement for
Cod Wars would generally protect the British trawling fleet. Over the course of this Cod War, a total of 32 British frigates had entered the contested waters. On 19 July 1974, more than nine months after the signing of the agreement, one of the largest wet fish stern trawlers in the British fleet, "C.S. Forester", which had been fishing inside the limit, was shelled and captured by the Icelandic gunboat V/s "Þór" after a pursuit. "C. S. Forester" was shelled with non-explosive ammunition after repeated warnings. The trawler was hit by at least two rounds, which damaged the engine room and a