Siglufjörður stands in a fjord of the same name at the furthermost point of Tröllaskagi peninsula. It was a major fisheries centre in the first half of the 20th century as harbour conditions were excellent. For a time it was the largest herring centre in Iceland and had a population of 3,100. The town was quite isolated until a tunnel was built through Mt. Strákar in 1967, the first one to be built in Iceland. The Icelandic Herring Era Museum is in the town that commemorates the "herring years"

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