The Scandinavian Peninsula is located in Northern Europe and is primarily shared by Norway and Sweden. Norway occupies the western and northern parts of the peninsula, characterized by its famous fjords—deep, narrow inlets of the sea carved by glaciers. Oslo is Norway's capital. Sweden occupies the eastern part, featuring a landscape of thousands of coastal islands, inland lakes, and vast forests. Stockholm is the capital of Sweden. The peninsula is separated from much of Europe by the Baltic Sea and the North Sea. The climate varies from maritime in the west to continental in the east. North of the Arctic Circle, the region experiences the 'midnight sun' in summer and polar nights in winter. The Scandinavian Mountains form a natural border between the two countries. Both nations have high standards of living and are known for their social welfare systems. The region is also rich in natural resources, including timber, iron ore, and, in Norway's case, oil and natural gas.