The Icelandic Meteorological Office (IMO) said in a statement that since June 22 "no activity has been seen in the crater", where in late May orange lava fountains burst out north of the fishing town of Grindavik.
It had been the fifth eruption to hit the area in six months, coming almost three weeks after the end of a previous one that had been ongoing since March 16.
Most of Grindavik's 4,000 residents had evacuated in November, prior to a December eruption.
Lava then flowed into the town's streets in January, engulfing three homes.
The Reykjanes peninsula had not experienced an eruption for eight centuries until a March 2021 eruption.
Further eruptions occurred in August 2022 and in July and December 2023, leading volcanologists to warn a new era of seismic activity had begun in the region.
Iceland is home to 33 active volcano systems, the highest number in Europe.
It straddles the Mid-Atlantic Ridge, a crack in the ocean floor separating the Eurasian and North American tectonic plates.
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