[7] During the first year of World War II, Iceland strictly enforced a position of neutrality and took action against both British and German forces that violated it.

On 10 May 1940, Operation Fork was launched by the United Kingdom when military forces sailed into Reykjavík Harbour and began an invasion of Iceland.

On the day of the invasion, Prime Minister Hermann Jónasson read a radio announcement instructing Icelanders to treat the British troops as guests.

On 15 May 1941, the Althing adopted a law creating the position of regent for Sveinn Björnsson in order to represent the monarchy.

[2] At its peak, Britain had approximately 25,000 troops stationed in Iceland, all but eliminating unemployment in Reykjavík and other strategically important places.