Lava penetrates protective barriers near Grindavik, a fishing town on a southwestern peninsula also evacuated last year.

A volcano erupted to the south of Iceland's capital on Tuesday, spewing lava and smoke in a fiery display of orange and red that triggered the evacuation of tourists and residents, although air traffic continued as normal.

While the magma has not yet breached the surface, the Icelandic Meteorological Office issued a warning on Tuesday, stating, "A magma eruption has begun." Hundreds of small earthquakes have rattled the area.

Iceland’s Met Office says a volcano is erupting in the southwestern part of the country, hours after a nearby town and a geothermal spa were evacuated

Video from Icelandic Coast Guard helicopter shows lava from the eruption near the town of Grindavik. Thousands have been evacuated including the popular tourist destination, the Blue Lagoon geothermal spa.

A volcano is erupting in the southwestern part of Iceland, hours after a nearby town and the Blue Lagoon geothermal spa were evacuated.

The eruption began near Grindavik, a small town long threatened by volcanic disruptions, and prompted the closure of a popular tourist destination.

Authorities in Iceland were forced by a new volcanic eruption to evacuate dozens of homes and shut down the hugely popular Blue Lagoon tourist attraction.

Tourists and residents have been evacuated as a volcano erupted in south-west Iceland, threatening a town and popular attraction. The volcano has been spewing lava and smoke in a fiery display of orange and red since the eruption began in the morning,