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Thank you for following our live coverage today.

Here is a recap of the big events:

• Iceland's president says it is a "daunting period" for the country as it battles "tremendous forces of nature";
• Drone footage captured the sheer scale of the disaster, as houses were set on fire and jets of lava sprayed into the air;
• The search for a man who fell into a crack after last month's volcanic eruption has been called off;
• And more than 200 sheep are thought to be locked in shelters in Grindavik, according to a vet.
  

To read more about the eruption and aftermath go here: 

This map from the National Land Survey of Iceland (Landmaelingar Islands) shows the lava flow to the north of Grindavik.

Lava has flowed from a crack close to Grindavik, setting three houses on fire.

There is also a larger fissure north of the town.

These pictures show lava flowing from the Fagradalsfjall volcano near Grindavik.

Aerial photos show the lava flow front that entered the town, destroying three houses.

GPS measurements are still showing geological movements and indicating magma continues to flow in a corridor beneath the town of Grindavik, a volcanologist has said.

Molten lava reached the outskirts of the town around noon yesterday, setting three houses on fire.

The town had already been evacuated and there was no immediate danger to people.

Volcanologist Rikke Pedersen said the crack in the earth's surface that opened close to Grindavik yesterday was no longer active and lava production from the larger fissure north of the town was decreasing.

"Activity has dropped significantly overnight," she said.

Up to 240 sheep are locked in shelters in Grindavik, the chief veterinarian at the Icelandic Food and Veterinary Authority has said.

The authority has been in contact with the Civil Protection Committee to ask for owners to be granted permission to bring their animals to safety.

"We have pointed out the need for this and have done what we can to push this through. It seems to us that this is between 220 and 240 sheep," Mr Pordarson told the Iceland monitor. "We are waiting for this to be addressed."

Mr Pordarson said he was concerned about lack of water for the animals after water to the town was cut off by the eruption.

He said he did not know the number of other animal species that might remain in the town, and said he has received reports some cats did not return when their owners left the town.

"We鈥檙e concerned about all these animals and that they get a good shelter," Mr Pordarson said.

Iceland's government is assessing the housing situation for the evacuated residents of Grindavik, according to broadcaster RUV.

Justice minister Gudrun Hafsteinsdottir was cited as saying it would not be possible to return to the town until it is "considered completely safe".

"The situation changed completely yesterday and people are not going to Grindavik for the next few months," she said, adding that the government would need to "look at the housing issue in a new light and over a longer period of time". 

Ms Hafsteinsdottir said everything was being done to find more apartments for residents, according to RUV.

The search for a workman who fell into a crack in the ground that opened up after last month's volcanic eruption has been called off.

"Unfortunately the man was not found," local police told Sky News.

A spokesperson said conditions were too dangerous.

Ludvik Petursson, 50, went missing on 10 January.

He was working to fill crevasses formed by earthquakes and volcanic activity in the town of Grindavik, near where the latest eruption has taken place.

Hundreds of people were involved in the search, which had to be stopped overnight last Thursday due to a rockfall.

Local police said Mr Petursson was a father of four and said he had two grandchildren.

Pictures taken by the Icelandic Coast Guard show the scale of the eruption and its proximity to nearby Grindavik.

The images, taken from the air, show lava shooting out of a fissure in the ground and creeping towards the town.

By Thomas Moore, science correspondent in Iceland

Stand on the hill overlooking the eruption site and you see how perilously close it is to Grindavik.

A search and rescue team had taken us into the exclusion zone, past the Blue Lagoon spa, towards the evacuated town.

From our vantage point we could see fire fountains spouting molten rock and lava sweeping towards people's homes.

The eruption has subsided overnight.

It's nothing like the curtain of fire videoed by the coastguard helicopter on Sunday.

We saw three fire fountains. One was spouting lava a good 5m into the air; the other two were smaller.

The lava doesn't seem to be moving now, but it is glowing red hot in places. Steam and smoke rise into the chilly winter air.

But the lava has already caused considerable damage, severing the pipes that took hot water from the nearby power station into the town.

It means homes have no heat. And at this time of year that makes them uninhabitable.

Engineers are assessing how the pipes might be rerouted, but that will take a while.

The defensive wall that workers have been building over the last fortnight has prevented more considerable damage to the town.

It's about 3m high, built from rock and earth. And it has diverted much of the lava flow.

It's the first time it has ever been tried and it worked.

The wall hasn't been finished though, and where it was slightly lower it was overtopped by lava.

The second fissure, which opened up much closer to town, inside the defensive wall, took everyone by surprise.

There was nothing to stop the lava, but fortunately only three houses appear to have been consumed by the molten rock or burned by the intense heat.

Civil defence teams are now taking stock of the situation.

If the eruption is petering out already then repairs can start.

But whether the people of Grindavik want to return to their homes when lava is looming on their doorstep is another matter.