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Iceland: September Horse Round-up & other questions

Hello. We may travel to Iceland this early September, for 10 days, and are hoping to drive around it, preferably on as little of the Ring Road as necessary, without venturing WAY out into the rough : ) It will be an on-again/off-again relationship with the Ring Road.

Questions:

This means plenty of driving on gravel, huh?

Do you recommend the need for a 4-Wheel Drive vehicle? Some sources seem to say it's required, others say a car works fine, but must drive slow. I wonder which, & just how bad the roads are & how slow we'll have to drive?

If I'm correct, the sheep round up (Rettir?) starts the 2nd weekend of September, & horses at the end of the month. Correct? Does this mean many of the roads will be clogged with sheep & horses on them, thus much slower to drive, or do they keep the sheep/horses off the roads?

THANK YOU FOR YOUR TIME.

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