Scientists detected about 300 earthquakes in the area around the Bardarbunga volcano since Tuesday, which could herald an eruption.
The volcano, in the north-west region of Iceland’s Vatnajokull glacier, could be set to spew out a huge ash cloud.
It said: “It cannot be ruled out that the seismic activity in Bardarbunga could lead to a volcanic eruption.”
The risk level to the aviation industry has been raised to orange – the second-highest level.
There are fears that an eruption could have similar effects to the Eyjafjallajokull eruption in 2010.
The incident shut down much of Europe’s airspace for six days, affecting more than 10 million people and causing travel chaos across Europe.
This was the largest closure of European airspace since World War Two, with losses estimated at between 1.5billion and 2.5billion euros (£1.3-2.2billion).
Full article: Hundreds evacuated after more than 300 earthquakes herald ANOTHER ASH CLOUD (Express)