Reyðarfjörður is a town in Iceland. It has a population of a bit more than 1.000 people and is one of the most populated villages that constitute the municipality of Fjarðabyggð
The town is at the bottom of the eponymous fjord, the largest on the east coast of Iceland. Like most other towns in the East Fjords, it is surrounded by mountains, of which the highest is about 972 metres (3,189 ft). Although the climate is particularly rainy and foggy, on clear summer days it often has the highest temperatures in Iceland.
From the early 20th century, Reyðarfjörður was a trading port, as well as a fishing port. Due to its strategic location and good harbour conditions, it became the second-largest of the Allied bases in Iceland during World War II. There is a World War II museum located at the old camp above the town.
Reyðarfjörður joined Eskifjörður and Neskaupstaður in 1998 to form the new municipality of Fjarðabyggð ("fjords-settlement").
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