1) Uses anti-terror law to steal Iceland's money ( see Guido and We are not Terrorists)
2) Force the Icelanders to take money from Russia ( they might want the abandoned American airforce base)
3) Lend them money to use to pay us back - er ...without releasing the frozen money.
As they now say in History lessons " And how do you think they feel about all that?
Just in case you've forgotten, the Icelanders won the various Cod Wars.....