A volcano in southwest Iceland near the fishing town of Grindavik finally erupted on Monday night after weeks of uncertainty, with plumes of lava sent 100 meters into the sky.

Grindavik and the surrounding area was evacuated at 21.00 local time and the volcano erupted at 22:17.

After an initial full scale evacuation of Grindavik in late November, people had slowly been allowed back in the village during the daytime.

"All is ok and we hope the lava will not go over important infrastructure," Eirikur Oli Dagbjartsson, fishing fleet manager of Grindavik-based whitefish group Thorbjorn, told IntraFish.