Iceland operates on Greenwich Mean Time (GMT), which is Coordinated Universal Time (UTC+0), year-round. Iceland does not observe daylight saving time, making it one of the few European countries with consistent time throughout the year.
All of Iceland follows the same timezone. The capital Reykjavik, along with Akureyri, Keflavik, and all other towns and villages, observe GMT. Despite its geographic location suggesting it should be further west, Iceland chose GMT to align with Western Europe.
Iceland experiences extreme variations in daylight throughout the year. During summer, the country enjoys the "midnight sun" with nearly 24 hours of daylight, while winter brings only 4-5 hours of daylight in Reykjavik. This is why Iceland abandoned DST in 1968—changing clocks made little difference.