Iceland EU & politics: Iceland’s municipal election results point to a clear swing to the right, with the Independence Party strengthening its position in Reykjavík and beyond. Monetary policy & inflation: Fed officials in Iceland debated how long the Iran-linked energy shock will last, with Michelle Bowman saying it’s too soon to judge persistence while others warn inflation may not be “transitory.” UK banking cyber risk: Bank of England Governor Andrew Bailey says British banks still can’t access Anthropic’s Mythos AI model for cyber testing, calling for an international approach to spillover risks. Iceland economy & currency: Iceland’s Finance Ministry says the króna’s costs outweigh benefits, reigniting euro-adoption debate as borrowing costs stay among the highest in western Europe. Arctic trade & shipping: Analysts argue the Arctic’s Northern Sea Route could become a practical alternative to chokepoints like Hormuz, reshaping China-Europe logistics. Tourism pressure: Iceland is reported to have become the world’s most expensive country again, driven by tourism demand and rental competition. Aviation & logistics: Atlas Air takes a 49% stake in Icelandic ACMI carrier Air Atlanta Icelandic to expand widebody capacity globally. Health & biotech: Oculis reports Phase 3 topline results for OCS-01 in diabetic macular edema, shifting focus to other registrational programs. Climate impacts: Mosquitoes have been found in Iceland for the first time, linked to unusually warm spring conditions. Industry travel products: Holiday Moods Adventures launches an Iceland portfolio for 2026-27, adding fixed departures and Northern Lights packages.