What effects did the Danish trade monopoly have on Iceland’s contacts with other countries?

The Danish trade monopoly, established by royal decree in 1602, had a profound isolating effect on Iceland. By granting exclusive rights to Danish merchants, the decree effectively severed Iceland’s long-standing commercial and cultural ties with other nations, particularly England and Germany.1

For nearly two centuries, this arrangement restricted Iceland’s foreign trade almost exclusively to Denmark. As a result, the influence of earlier international contacts largely disappeared. Even after the monopoly was formally abolished in 1787, trade remained restricted to subjects of the Danish crown until 1855, continuing to limit Iceland's direct engagement with the broader international community.1