The whole of Iceland ‘is on edge’ as experts say earthquakes which have been rumbling beneath the surface for days and have torn through a town are a precursor to a volcanic eruption.

More than 700 quakes have been recorded in the southwestern Reykjanes Peninsula since yesterday, and despite them being slightly weaker than in previous days the Fagradalsfjall volcano is still expected to erupt.

Iceland has been shaken by thousands of tremors over the past few days, with a state of emergency declared on Friday and around 4,000 people ordered to leave the fishing community of Grindavik. 

Evacuated residents have reported hearing ‘unholy sounds’ from beneath the ground as they fled, while those allowed to return to collect belongings from their deserted homes were told: ‘If you hear sirens, drop everything and get out!’

Huge sinkholes have opened up around the town, and now dramatic aerial footage captured by the Coast Guard shows a chasm running through the centre, with smoke pouring out of the gaping splits as magma rises. 

Meanwhile, authorities are urgently preparing to build defence walls around a nearby geothermal power plant which they desperately hope will protect it from lava flows – amid concerns that a volcanic eruption could be imminent.

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