Iceland drives on the right — and an International Driving Permit (IDP) is recommended.
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Iceland drives on the right-hand side of the road.
Not strictly, but it's recommended. Iceland generally accepts a US license for short stays, but an IDP is recommended, particularly for winter/rural rentals.
In the US, an IDP is issued by AAA or the National Auto Club — it costs around $20, requires a passport photo, and can't be obtained after you've already left the country.
No — an IDP is a translation document, not a standalone license. You must carry your regular US driver's license alongside it at all times.