Iceland volcano eruption: ‘Daunting period of upheaval’ ahead for Icelandic community as volcano destroys homes

The eruption is the second in a month near the town of Grindavik

It is a "dark day” for the small community Grindavik, the prime minister of Iceland has warned, as houses caught fire in the town following a volcanic eruption on Sunday.

The country’s president said “a daunting period of upheaval has begun” on the Reykjanes peninsula, where a long-dormant volcano erupted for the second time in less than a month.

Local authorities said considerable damage had been done to the town, on the south coast of the Reykjanes peninsula and urged the 3,800-strong community to pull together. Residents were evacuated in November and only allowed to return home three days before Christmas. However, they were instructed to flee again hours before the latest eruption.

A man with camera films an area with glowing lava near the southwestern Icelandic town of Grindavik after a volcanic eruption on Sunday.

"Today is a dark day for Grindavik and for the whole of Iceland – but the sun will rise again," Prime Minister Katrin Jakobsdottir said.

The airport is operating as normal, but the famous Blue Lagoon tourist attraction nearby has closed again – shortly after re-opening after being shuttered for a month due to the first fears of an eruption.

Icelandic tourism authorities, which have enjoyed a boom period in travel to the country over the past ten years, said the volcanic activity could spur a new wave of visitors once the danger has passed.

No-one has been killed in the eruptions, but a workman is missing after reportedly falling into a crack opened by the volcano.

In a televised address, Icelandic president, Gudni Th Johannesson, said: “We don’t yet know how this eruption will unfold, but we must still take those actions that are within our power.

“We continue to hope for as good an outcome as possible, in the face of these tremendous forces of nature. We will carry on with our responsibilities and we will continue to stand together.”

Geophysicist Magnus Tumi Gudmundsson said on Monday morning the eruption had “decreased considerably” overnight, but that it was impossible to say when it would end.

In 2010, the Eyjafjallajökull volcano erupted in Iceland, closing down European air travel for weeks due to fears that volcanic ash could affect aeroplane engines.