Voters in Iceland have rejected a government-backed proposal to reopen talks on European Union membership, in a closely watched referendum.

Official results showed 52.8% opposed negotiations with Brussels, while 47.2% supported them. Fishing rights, national sovereignty and economic concerns dominated the debate.

The outcome is a setback for advocates of EU accession and signals that Iceland will remain outside the bloc as Arctic security, trade tensions and the cost of living remain key political issues.