Prime Minister Thorbjörn Fälldin hastens to Stockholm where he gathers representatives of the government and military. The Bolshevik-hating Commander-in-Chief, Börje Lagercrantz, argues that Sweden is under attack and that the only reasonable course of action is to counter-attack, but the Secretary of State, Ola Ullsten, advises caution, prompting Börje to leave the meeting in a fury. On the submarine, the situation for Captain Peskov and his crew becomes increasingly desperate. The submarine is firmly stuck and they are fearful of the punishment they will receive when (or if) they do get home. New orders come from the Kremlin that Captain Peskov must blow up the submarine if the Swedes try to board the vessel, an action that is a tempting solve to most of his problems.

Prime Minister Thorbjörn holds a press conference in Government Offices in Stockholm. When he reveals that the submarine is equipped with nuclear warheads, a chill passes through the room. Thorbjörn and Soviet Ambassador, Aleksandra Kosygina, finally manage to solve the Gordian knot, but is there enough time to free the submarine from the reef before a conflict ensues? NATO forces have arrived in the area, and the Russian fleet looms nearby, readying themselves to attack, urged on by a drunken Brezhnev. On board the submarine, it turns out that there has been a mutiny. As tensions rise, the world holds its breath.