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Here are a few tripoto links written by travellers pertaining to their travel to Iceland, see if it is suitable for your travel. https://www.tripoto.com/trip/how-i-travelled-through-one-of-the-most-expensive-countries-for-3-weeks-under-60k-6197a2b0811ae https://www.tripoto.com/iceland/trips/epic-7-day-road-trip-itinerary-in-iceland-5901769a83be3 https://www.tripoto.com/reykjavik/trips/the-ultimate-5-day-iceland-itinerary-5a9b6013068ee Looks like travel restrictions are lifted from march. You need to carry your vaccine certificate. RTPCR is not needed. However do check through website once before travelling, for lifted announcements was made in March.
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