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Despite the lack in diversity of Syrphidae in Iceland (only 28 recorded species) I've not been able to identify this one. Unfortunately, I do not possess a checklist for Syrphidae in Iceland, and accurate checklists are not available on the internet.

Size: About 1 cm in length.
Habitat: Lush meadow beside a small stream and some stands of spruce and birch.
Date: June 21, 2006

Greater resolution:
http://www.flickr...458070747/