This is such an unfortunate reversal of fortune. The country with the lowest number of covid cases in the EU/EFTA now has one of the highest. Those of us who were fortunate to visit in July were really lucky.
If one does not spend much time in the area around reykjavik, your riskiest place is the boat ride to view the iceberg. There are not many people that you will encounter anywhere else in Iceland.
Anyway, I will go back to Iceland in the future after the first visit in late July.