Iceland volcano eruption: A volcano erupted late on Monday in southwest Iceland, spewing lava and smoke across a wide area after weeks of intense earthquake activity, the country’s Meteorological Office said, threatening a nearby town. Fearing a significant eruption on the Reykjanes peninsula, authorities last month evacuated the nearly 4,000 inhabitants of the fishing town of Grindavik and closed the nearby Blue Lagoon geothermal spa.Iceland volcano eruption: A volcano erupted late on Monday in southwest Iceland, spewing lava and smoke across a wide area after weeks of intense earthquake activity, the country’s Meteorological Office said, threatening a nearby town. Fearing a significant eruption on the Reykjanes peninsula, authorities last month evacuated the nearly 4,000 inhabitants of the fishing town of Grindavik and closed the nearby Blue Lagoon geothermal spa.