It would be more likely to interfere with Iceland's connection to the world financial system, for example to burden that connection with regulatory hurdles or t

It would be more likely to interfere with Iceland's connection to the world financial system, for example to burden that connection with regulatory hurdles or to even suspend it, than to use overt military force, because that strategy could be hidden from the average citizen of the aggressor, whereas an invasion would ultimately require an explanation and much political capital.