Weather Underground is a commercial weather service in the USA with very good maps, blogs, and a very good section on climate change (and debunking sceptics).
It is currently tracking the progress of Hurricane Cristobal (currently off the coast of Delaware and accellerating to the northeast). It's tropical page for Cristobal (continuously updated) can be found here (including public advisories, past track, predicted track and strength, satellite photos, and coastal radar from the USA).
More below the orange cyclone weather symbol below.
On the predicted track, the hurricane is expected to go extra-tropical (meaning its warm-core hurricane centre will become a cold-core storm, but it does not lose any energy), and will slam into Iceland's south coast on Sunday.
It is not expected to drop below Category 1 hurricane strength until it crosses 55 deg N, between Greenland and Iceland. Category 1 is 64 knots / 74 mph / 119 km/h wind speed minimum.
It is expected to reach the south coast of Iceland at tropical storm strength (18–32 m/s, 34–63 knots, 39–73 mph, 63–118 km/h). Bear in mind these are speeds relative to the eye of the storm. The storm rotates counter-clockwise and will be moving roughly north, so the east side of the storm will be tropical storm wind speeds plus the storm's forward momentum. (On the west side it will be minus the storm's momentum.)
Hence, depending on exactly where it reaches Iceland determines whether the country gets smacked hard, soft, or not at all.
In the meantime, Hurricane Cristobal is driving a storm surge in front of it, which brings coastal flooding.
If Cristobal does not do something different than the National Hurricane Center's predictions, it will be a tropical storm in strength, close to hurricane strength. Wikipedia describes a Category 1 hurricane's damage (and by extension a strong tropical storm moving rapidly) as follows:
Category 1 storms usually cause no significant structural damage to most well-constructed permanent structures; however, they can topple unanchored mobile homes, as well as uproot or snap numerous trees. Poorly attached roof shingles or tiles can blow off. Coastal flooding and pier damage are often associated with Category 1 storms. Power outages are typically widespread to extensive, sometimes lasting several days. Even though it is the least intense type of hurricane, the storm can still produce widespread damage and can be a life-threatening storm.
So why all this: declining weather will certainly make the Icelandic Met Office's job much more difficult whilst trying to monitor the volcano Bárðarbunga and its activity. In addition, should widespread power outages occur (or tornadoes as are the norm with dying tropical storms), it might be a monumental task to both monitor the volcano and keep the public in Iceland informed.
I would be interested in reading Rei's take on all this.