Iceland's strategic location made it difficult to remain neutral during the events of World War II. The island nation's population was small, and its economy was hit hard during the Great Depression. Britain imposed export controls on Icelandic exports to Germany, further depressing the economy. The British offered assistance and sought to make Iceland an ally, but the Icelandic government chose to remain neutral, disallowing visits by military vessels and aircraft of the belligerents. The German invasion of Denmark and Norway demonstrated that Hitler did not respect neutrality, and Britain considered invading Iceland to prevent a German invasion. The British eventually occupied Iceland, and the US took over the occupation in 1941. The occupation had a significant impact on Iceland's economy and culture, with the US and Britain building infrastructure and bases on the island.
