It appears that a volcano eruption is starting in Grímsfjall volcano. I am going to post more updates about this when I know more.
No official word from Icelandic Met Office or Rúv yet. But should not be long until that a announcement is given.
This has been confirmed by a news on Morgunblaðið (mbl.is)
Gos að hefjast i Grímsvötnum (mbl.is, Icelandic)