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Lava from two volcanic fissures in Iceland has entered the fishing town of Grindav铆k, setting several houses on fire and burying a building under the molten rock.

The eruption - the second within a month on the Reykjanes Peninsula - follows several others in recent years and led to the evacuation of more than 3,000 people.

The Prime Minister, Katr铆n Jakobsd贸ttir, called it "a black day for Grindav铆k and for all of Iceland". Her government will meet to discuss measures to house the evacuated residents.

Civil defence officials say they are looking at how to enhance protective barriers around Grindav铆k. The volcanic activity of the Sundhn煤kur crater chain has caused more than $70m of damage.

Darren Adam is a broadcaster with the Icelandic national broadcast service R脷V in the capital, Reykjavik. He told Newsday although there is little threat to life, there is lava flowing into the deserted village destroying buildings.

"This [eruption] is not like 2010 when airspace closed."

"Until about four years ago there hadn't had an eruption here for 800 years... so it's definitely waking up. Local police [are] saying to people: 'Stay away.'"

(Photo: Lava explosions and rising smoke after a volcanic eruption near the town of Grindavik, Iceland; Credit: EPA)

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