How could it be that Iceland, the home of Bjork (and indeed the entire Sugarcubes), Lazy Town, and the Olympic silver medal-winning men's handball team, could suddenly become the Nauru of the North Atlantic?

Now that Flash Gordon has invoked anti-terrorism laws against the subversive Icelanders, could we be heading towards Cod War II?

Or could Iceland become another geopolitical service of Gazprom?