The eventful contest ebbed and flowed with the breakthrough coming in the 26th minute following Ingrid Hjelmseth’s hopeful ball upfield.
Kristine Hegland was quickest to react, with her superb first touch knocking the ball past the onrushing defender and into the penalty area.
Iceland custodian Gudbjörg Gunnarsdóttir raced off her line in an attempt to stifle the attack but was slow in getting to the ball as Hegland simply rounded the goalkeeper and slid the ball into the net from a tight angle.
Solveig Gulbrandsen could, and perhaps should, have doubled Norway’s lead just moments later but she headed wide from close range before Caroline Graham Hansen fired into the side netting when she really should have made the keeper work.
Norway deservedly went into the break in front but Iceland started their fight-back after the whistle.
Hólmfrídur Magnúsdóttir was offered a good sight of goal at in the opening minutes of the second half but was unable to convert.
Sara Björk Gunnarsdóttir had a great opportunity just moments later but her header left a lot to be desired, failing to make any real contact with the ball.
Norway looked like they were going to hold on and take a vital three points but with just three minutes remaining Iceland were awarded a penalty as Gunnarsdóttir went down in the box under a challenge from Marit Christensen.
Margrét Lára Vidarsdóttir showed a cool head to roll the ball into the net, sending the keeper the wrong way.
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