Priority road
You are on the main road: every side road you pass faces a give-way or stop sign, so you keep your speed and they wait for you. Stay alert anyway — right of way is something you're given, not something you can count on.
There's no American equivalent of this sign, so it's worth a minute. In the US you read right of way junction by junction; the yellow diamond declares it once, for every junction ahead, until the same diamond with a black bar (aðalbraut endar) cancels it. The flip side is what catches visitors out: where there's no diamond and no other sign, Iceland uses the European right-hand rule — traffic coming from your right has priority, even from a smaller street. So if you haven't seen the diamond, don't assume the bigger road wins: cover the brake and check right.
