Probably the most famous of Icelandic whales is the one named Keiko. He was
caught off the shores of Iceland and put in an Icelandic zoo, but when the
zoo closed down, the whale was sold to USA. Later it then achieved fame through
the film Free
Willy and soon after caught the eye and sympathy of some people who formed
a charity to bring him back to Iceland.
A few years ago that task was accomplished and now he swims freely in the
ocean, still monitored by the aforementioned charity and was recently swimming
around Norway.
One good place in the North of Iceland that offers whale watching is:
http://www.nordursigling.is/

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