Iceland's Prime Minister Sigmundur David Gunnlaugsson has resigned, his party said on Tuesday, the first major political casualty to emerge from the leak of the so-called Panama Papers financial documents.

"The prime minister told (his party's) parliamentary group meeting that he would step down as prime minister and I will take over," the Progressive party's deputy leader and Agriculture Minister Sigurdur Ingi Johannsson told a live broadcast.

Source: AFP