The United States, Denmark, and Greenland signed an agreement on the sidelines of the United Nations General Assembly in New York City to expand the U.S. military presence on Greenland, while affirming the island’s sovereignty under the Danish kingdom. The three-way deal, announced Tuesday, marks a shift from earlier calls by President Donald Trump to potentially acquire the Arctic territory, a move that had sparked alarm among Greenlanders and strained relations within NATO.

The agreement builds on a defense cooperation framework originally established in 1951, which enabled the United States to maintain a presence at Pituffik Space Base. The updated pact allows for the expansion of this existing facility and the construction of two additional military sites, located at Narsarsuaq and Mestersvig. Narsarsuaq, once home to a U.S. airbase closed in the 1950s, currently has only a small civilian population. Mestersvig serves as a Danish military outpost used by the Sirius Patrol, a special forces unit.

While Trump had previously insisted that Greenland was critical to U.S. national security and even suggested the possibility of purchasing the island or using military force to gain control, the newly signed deal effectively ends those demands. Danish Prime Minister Mette Frederiksen described the agreement as “an even bigger and better agreement, a deal that can last for ever,” emphasizing respect for Greenland’s self-determination and Denmark’s sovereignty. Greenland’s Prime Minister Jens-Frederik Nielsen also welcomed the pact, stating that it strengthens security for Greenland, Denmark, the United States, and the broader Western alliance.

Trump celebrated the agreement on social media, asserting that the U.S. would have “FOREVER the complete ability to do what is necessary in Greenland” to ensure security, and noted that the deal would come at no cost to the United States. However, critics and local residents had earlier expressed concern about the implications of increased U.S. military presence and fears over Greenland’s autonomy.

The announcement of the deal also impacted financial markets, with shares of several U.S.-listed companies connected to Greenland’s natural resources surging. Greenland Energy, an oil and gas exploration firm working in the Jameson Land Basin, saw its share price increase sharply, along with Greenland Mines and Critical Metals Corp, which are involved in mining palladium, gold, platinum, and critical metals in Greenland. This followed tensions earlier in the year when Greenland’s government issued a warning to a joint venture partner for unauthorized equipment delivery, leading to the postponement of oil exploration plans.

Experts noted that the new agreement closely resembles the original 1951 accord in substance, reaffirming U.S. rights to establish defense installations on Greenland but stopping short of any transfer of sovereignty. The deal is viewed as a strategic move amid growing global interest in the Arctic region, where climate change is opening new navigational routes and access to natural resources. It also reflects complex dynamics within NATO, balancing U.S. security interests with regional autonomy and alliance cohesion.