Magma tunnel lies under Grindavík - LIVE - RÚV.is
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A magma corridor lies under the town of GrindavíkA fissure could open anywhere in that magma corridorThe town has been evacuated. The evacuation was announced at midnightCivil Defence declared a Level of DangerEmergency responders were called out of Grindavík around 4amResidents who left Grindavík yesterday are asked to call the Red Cross on phone 1717 and register their departureA natural disaster expert makes it clear that this is a very large event

From the news thread: 1, 2, 3

A magma tunnel has formed under the town of Grindavík, near the site of recent eruptions in Iceland. The town has been evacuated.

Geologists can not predict with certainty what will happen but there are three scenarios:

It quiets down and there is no eruption unless something starts again. This is pretty unlikely after everything that has already happened.

There is an eruption inside the town limits. This would be bad for the inhabitants.

There is an eruption at sea. This could have big regional and global consequences since air travel needs ash free skies. Depends on the size of the eruption.