Iceland and Norway fall in the group of Scandinavian countries. Apart from having same cultural trends it should be mentioned that both this countries are neighbors. The similarity of people, culture and climate has led to a special bond between Iceland and Norway. The similarity of policies between the two countries can also be noticed in their foreign relations. Both the countries are not the member of European Union where as Iceland and Norway is members of the Nordic council and NATO.
The major stand of relationship between Norway and Iceland is their common membership to the Nordic council. This council was established with the end of the Second World War and since then it has worked as a common bond between both the countries. As both Norway and Iceland is member of the council the citizens of both these countries do not need any passport to visit each other's country. The cultural and economic side of the Norway and Iceland is mostly associated with the Nordic council where as the military relations of both the countries can be associated with the NATO, as both are its member.
Very recently a Memorandum of Understanding was signed between Norway and Iceland regarding the security issues. The other contexts to this treaty are rescue services, civil emergency and traffic surveillance in the sea. When the cooperation regarding military arrangement between United States and Iceland broke Norway came to the rescue and thus this memorandum was signed.