Icelandic Meteorological Office and Almannavarnir have issued a warning about possible large earthquake on the Reykjanes peninsula. This warning is triggered by the earthquake swarm in Krísuvík on 30-May-2015 and a second earthquake swarm on the Reykjanes ridge on 11-June-2015.
Largest earthquakes in this earthquake sequence once it starts might reach magnitude of 6,5. There remains a hope that the stress on the Reykjanes peninsula and Reykjanes ridge is going to be released out slowly without large earthquake taking place. The warning only covers the populated part of the Reykjanes, from Kleifarvatn and east to Ölfus. It is my view that chance is small at best, it might work out that, I do think that is unlikely outcome of this. It is impossible to know when this earthquake activity might happen, but since the warning has been issued it might only be few weeks to month until something happens.
Last large earthquake in Bláfjöll mountains (Breinnisteinsfjöll volcano) took place in 1929 and 1968. Due to the area in question being less populated than it is today there was no or little damage. Current warning says the people should prepare to limit damage, since in past few years the populated areas have moved closer earthquake risk areas of the Reykjanes peninsula.
The warning (in Icelandic)
Skjálftavirkni á Reykjanesskaga (vedur.is, Icelandic Meteorological Office, Icelandic)
Fréttatilkynning vegna jarðskjálftavirkni að undanförnu á svæðinu frá Krísuvík austur í Ölfus (vedur.is, pdf, Icelandic)
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Article updated at 23:52 UTC.