There are tight restrictions in effect at the moment. The current rules are valid until the 12. of January at least. The current rules are listed here.
The hospitals are under pressure now, many are sick and needing intensive care. Most of those are not vaccinated. It’s important that everyone who possibly can, will get vaccinated. Information about how to get vaccinated can be found here.
You can always check www.covid.is for updated information and announcements regarding the COVID 19 pandemic.