Settlement and Commonwealth 874–1262
According to both Landnámabók and Íslendingabók, Celtic monks known as the Papar lived in Iceland before the Norse settlers arrived, possibly members of a Hiberno-Scottish mission. Recent archaeological excavations have revealed the ruins of a cabin in Hafnir on the Reykjanes peninsula, and carbon dating indicates that it was abandoned somewhere between 770 and 880, suggesting that Iceland was populated well before 874. This archaeological find may also indicate that the monks left Iceland before the Norse arrived.
The first known permanent Norse settler was Ingólfr Arnarson, who built his homestead in present-day Reykjavík in the year 874. Ingólfr was followed by many other emigrant settlers, largely Norsemen and their thralls, many of whom were Irish or Scottish. By 930, most arable land had been claimed and the Althing, a legislative and judiciary parliament, was initiated to regulate the Icelandic Commonwealth. Christianity was peacefully adopted around 999–1000, although Norse paganism persisted among some segments of the population for several years.
The Commonwealth lasted until the 13th century, when the political system devised by the original settlers proved unable to cope with the increasing power of Icelandic chieftains.
During these early Celtic and Viking settlements, the climate was significantly warmer and about 25% of Iceland was covered with forest compared to 1% now.
The Middle Ages
The internal struggles and civil strife of the Sturlung Era led to the signing of the Old Covenant in 1262, which ended the Commonwealth and brought Iceland under the Norwegian crown. Possession of Iceland passed to Denmark-Norway around 1380, when the kingdoms of Norway, Denmark and Sweden were united in the Kalmar Union. In the ensuing centuries, Iceland became one of the poorest countries in Europe. Infertile soil, volcanic eruptions, and an unforgiving climate
