Lava covered the parking lot of the hot spring complex and swallowed a building, and more than 50 nearby residents and tourists from the Blue Lagoon hot spring were evacuated in advance following the warning.
The lava also hit district heating hot water pipes, but the pipes were designed to hold them together, local officials said.
Local authorities cautioned that the eruption was not affecting aircraft operations but could be affected by gas emissions in nearby areas.
This volcano has been asleep for 800 years. It started to erupt again last year.
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