Photos: Lava sets house on fire after volcanic eruption in Iceland

Lava flowing from a volcano that erupted on Sunday near the Icelandic fishing port of Grindavik has engulfed at least three homes just hours after villagers were evacuated to safety, authorities said. It was the North Atlantic nation's fifth volcanic eruption in under three years.

The most recent occurred just weeks ago on December 18 in the same region, southwest of the capital Reykjavik. At least three houses were engulfed in fire as glowing orange lava flowed into the edge of the town of Grindavik, live images broadcast by public

Most of the 4,000-strong population of Grindavik had been evacuated as a precaution on November 11 after scientists said a magma dyke was shifting beneath them. At the time, a series of small earthquakes - sometimes hundreds per day - had created large cracks in roads, homes and buildings.

On Sunday, a first eruption began at 8:00 am (0800 GMT) when a crack opened in the ground around 450 meters (500 yards) from the town. At 1845 GMT, the Icelandic Metereological Office (IMO) said that fissure measured around 900 meters long, and crossed over the main road to Grindavik.

A second fissure then opened around midday on the edge of town, with that lava engulfing the homes. It measured around 100 meters by evening, IMO said. Jets of orange lava and plumes of smoke spewed into the sky from the two cracks throughout the day.

The eruption knocked out electricity and hot and cold water in Grindavik, authorities said, but airline flights were not affected.

Late on Saturday, authorities had ordered an emergency evacuation to be completed by Monday due to growing seismic activity and its impact on the large cracks already present in the town.

Authorities accelerated the evacuation order overnight when seismic activity intensified. Officials are keeping a close eye on the nearby Svartsengi geothermal plant, which provides electricity and water to the 30,000 residents of the Reykjanes peninsula. Workmen have been building a wall to protect the facility since November.

The island nation, which calls itself the land of fire and ice, has about 30 volcanic systems and more than 600 hot springs. It is one of the most geologically active places on earth due to its position between the North American and Eurasian tectonic plates on the mid-Atlantic ridge.

Fatalities from eruptions are rare. One person remains missing in Grindavik after being presumed last week to have fallen down a deep crack formed in the recent seismic activity.

One of the most disruptive volcanic events in the Nordic country's recent history occurred in 2010, when Eyjafjallajokull erupted in an explosion that released a plume of ash so vast that it grounded air traffic across Europe for weeks, resulting in the cancellation of 100,000 flights and affecting over 10 million people.