International targeting

In my google webmaster tools under Search Traffic then International Targeting it says "Your site's domain is currently associated with the target: Iceland" because I have a ".is" domain also says "If you don't want your site associated with any location, select Unlisted. Learn more about geotargeting."

But it does not give me the option to select a target country or unlisted. Any other way to change this?

I think you need a top level or country specific to target other countries..

You can't do anything about it because you're using a country specific domain. CrazyBuddy is right, you need a TLD if you want the choise of targeting other countries or worldwide.