Wayne Rooney opened the scoring from the spot inside five minutes, but they were pegged back seconds later by Gylfi Sigurdsson and Kolbeinn Sigthorsson, and rarely threatened to pull level as they drifted towards a damaging loss.
Here, we look at how Twitter reacted to another disappointing tournament exit for Roy Hodgson’s side.
Former England and Liverpool defender Jamie Carragher (@Carra23) wrote: “We’ll be better against the top teams! Jesus.....any pressure at the back we concede, against a team with 300k living there!”
Good Morning Britain presenter Piers Morgan (@piersmorgan) had a cheeky dig: “Don’t worry, if we lose I have a petition ready to play the game again.”
Leicester goalkeeper Kasper Schmeichel (@kschmeichel1) was amazed with a perceived lack of effort and commitment from the England players. He tweeted: “Come on England!!! You’re behind!! Do something! Run around!! Tackle someone!!! Anything!!!”
He added: “Fair play to Iceland!!! 100 per cent fully deserved!!”
Former England international Rodney Marsh (@RodneyMarsh10) added: “England completely devoid of improvisation - Looking slow, labored & knackered”
Match of the Day presenter and former England striker Gary Lineker (@GaryLineker) wrote: “The worst defeat in our history. England beaten by a country with more volcanoes than professional footballers. Well played Iceland.”
Joey Barton (@Joey7Barton) tweeted: “Hodgson will get the bullet 100 per cent. But Lewington and Gary Neville have also got to be binned. Think the Neville myth has exploded anyway!”
Anthony Ogogo (@AnthonyOgogo), bronze medallist at the 2012 Olympics, added: “Worst moment as an England fan in my life. At least all the times before we showed bottle, passion, desire. That was embarrassing.”