BBC correspondent Jessica Parker was reporting from the Icelandic town of Grindavik when authorities ordered an immediate evacuation for anyone in the area.
Residents were being allowed back into the town in small numbers to retrieve belongings when the evacuation order came.
Authorities later said the area around Grindavik was evacuated after sulphur dioxide was detected, sparking fears of a nearby opening in the ground.
The wider Reykjanes peninsula was struck by hundreds of earthquakes on Monday and according to scientists a volcanic eruption is expected.
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