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Iceland volcano eruption: Drone footage shows scale of disaster as houses are set on fire and jets of lava spray

Drone footage has captured the moment lava flowed into a fishing town and set fire to houses after a volcano erupted in southern Iceland.

The video shows fountains of lava spraying up from the mass of molten rock that emerged from fissures caused by volcanic activity in the Reykjanes peninsula.

A fissure has bypassed barriers that were put in place to protect the town of Grindavik - with the country's prime minister calling it a "very serious situation" and a top official saying it's the "worst-case scenario".

Grindavik was evacuated in November before a massive eruption from the same peninsula in December.

Here are some of the most striking images from the latest eruption so far.

Follow latest: Lava inside town after new crack opens