Town and spa evacuated in Iceland as formerly dormant volcano begins to erupt

An areal view of the volcanic eruption near the town of Grindavik (Marco di Marco/AP)

A volcano began erupting in south-western Iceland on Tuesday, just hours after authorities evacuated a nearby community and the Blue Lagoon spa.

Flames and smoke shot through the air as the volcanic fissure opened near the town of Grindavik, where some 40 homes have been evacuated, national broadcaster RUV reported.