Iceland and the United Kingdom experienced a series of crises that follow a similar pattern. Iceland extended its maritime limits – to preserve more fish for Icelandic vessels and conserve fish stocks. Britain resisted the extension. Both sides escalated their behavior (e.g., issuing threats and coercively harassing each another’s vessels), and Britain ultimately conceded. This chapter covers the 1971–1973 Cod War. It follows the above pattern, but with a somewhat unique twist. In the 1971–1973 episode, domestic politics within both democratic states encourage escalation. Iceland, moreover, threatens to leave the North Atlantic Treaty Organization (NATO) and to evict United States (US) forces from the Keflavik air base. Because of these threats, as well as escalating coercion, NATO mediates, and NATO and the US pressure Britain to concede. Ultimately, this crisis does not escalate to a major-state war because the disputed issue (i.e., maritime limits) lacks sufficient salience and past, similar episodes demonstrate that a nonwar solution exists.