This is what happens when Brits seize Icelandic banks and Norwegians don't do enough to help them financially.
You don't **** with Iceland. Apparently we've learned nothing from the Cod Wars
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As a matter of fact I can see them quite clearly:
Politician 1: *****, Sigurdur, everything's a mess and now those damned Norsemen and Brits have turned on us!
Politician 2: Anything we can do to punish them? Trade embargo? Cruise missiles across their cities? Naval blockade?
Politician 1: I have been in touch with our geologists. Apparently, there's a volcanic vent around here (he pulls out a map and points). Dropping half a ton of TNT into the vent should open it sufficiently to allow for the volcano to drown the Scandinavians and Brits in volcanic ash. Their aircraft will be grounded for days!
Politician 2: I love it! Get it done at once!
I mean, look at this. All of northern Europe affected, but oh so conveniently, Reykjavik with its airport is west of the cloud. ****ers planned this, all right.
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One really has to feel sorry for Iceland, first their economy blows up, then their geography. 
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Don't. The volcanic eruption has been quite the boon to their tourist industry. Which further fuels my Inside Job theory :P .