Iceland satellite image North is at top Green areas are vegetated White areas are ice Iceland is an island nation situated just south of the Arctic Circle in the Northern Atlantic Ocean The lighter marine areas are sedimentrich coastal waters The large area of ice is Vatnajokull the largest glacier by volume in Europe The three other glaciers are Myrdals Jokull in the south Langjokull in the west and Hofsjokull in the east Icelands capital city Reykjavik is situated in the southwest of the country