NO doubt Drysuit ONLY on those dives.
Never dove ther just stopped over on a trip to Amsterdam
What I saw was Beautiful
Just some quick facts
Iceland is the most Geologically active site in the world besides Yellowstone
They use Geothermal energy to heat their homes power their electricity and just about everything else. I would guess you could dive the Hot springs with out a dry suit (if you can dive the hot springs at all). BUt I'm guessing you could look into diving them or even the underwater lava flows (like Hawaii)
And on another note if you are on your way to Amsterdam (or other European cities) and you fly with Iceland air you stop over in Reykyavick (I know I spelt that wrong sorry) you can request a hotel stay from Iceland air (they own most of the hotels) and they willl put you up for a night for free and will postpone your filght out 1 day as well, no charge. This was the deal when I went a couple years back they were trying to drum up tourist business, they may still be doing it. Also if you sign up with their e-mail newsletters you get first crack at their specials, when I went it was $99.00 each way from NY to Amsterdam (that was NOT A TYPO $99.00 each way, total round trip with tax was like $255) So it is worth looking into.
Let me know if you find any good diving their I was planning a trip with my Nephew in a few years , he wants to visit the only Norse church left in the world.