Wales suffered their first significant setback under Craig Bellamy as they squandered a 2-0 half-time lead to draw with Iceland in the Nations League in Reykjavik.

Brennan Johnson put Wales ahead as he pounced from close range after Harry Wilson's shot was saved, before Wilson himself scored with an assured finish following a sumptuous lofted pass from Neco Williams.

But from a position of apparent control, Wales threw away their advantage in the space of three second-half minutes.

Iceland had already missed a flurry of chances when Logi Tomasson halved their deficit with a low strike, and the substitute left-back was then allowed to roam into the Wales penalty area and fire a cross which goalkeeper Danny Ward turned into his own net.

Having seemed to be coasting towards a second successive win and top spot in Group B4, Wales looked shell-shocked as they struggled to contain their resurgent opponents.

The result means Bellamy becomes the first Wales boss to remain unbeaten after his first three competitive matches – but that will be no comfort to the former captain after such a capitulation.

Bellamy will hope for a positive reaction when his side – who now trail group leaders Turkey by two points after their win over Montenegro – host the Montenegrins in Cardiff on Monday.

There were always likely to be bumps in the road during the early stages of Bellamy's tenure as he looks to implement an expansive new playing style. The head coach and his players had warned that their high-risk, high-reward approach might lead to mistakes.

But there is no doubt this disappointing evening in Reykjavik has tempered the excitement which greeted Bellamy's opening two games last month.

The new manager's first win, a 2-1 triumph in Montenegro, was built on a flying start in which Wales had scored both their goals in the opening three minutes.

They had to wait a little longer here but were still 2-0 up inside half an hour.

Whereas torrential rain and gusting winds caused chaos in Montenegro, the sub-zero Icelandic temperatures were more conducive to Wales’ fluent new playing style, albeit another challenge for their travelling fans.

More than a fifth of the 5,200 or so spectators at the picturesque Laugardalsvollur Stadium had come from Wales, swapping their customary bucket hats for woolly ones in the chilly Nordic air.

Their loud presence gave Johnson's opener the feel of a goal for the home side.

The Tottenham Hotspur forward reacted quickly to tap in from close range after Iceland goalkeeper Hakon Valdimarsson had saved Wilson’s initial effort and then attempted to nudge the ball away as it trickled towards the net.

Iceland clearly did not learn from that goal – which had originated from Williams' fine ball over the top for Wilson – because they conceded another in the same manner 18 minutes later.

This time the left-back was further out as he lifted a pinpoint diagonal pass deep from his own half and over the Icelandic defence to Wilson, who brought the ball down elegantly and fired confidently past Valdimarsson.

Wilson had another shot deflected against the post in between those goals, while Sorba Thomas had a shot saved by Valdimarsson, but Iceland carried a threat too.

Andri Gudjohnsen, son of former Chelsea striker Eidur, was denied by a brilliant goal-line block by Williams, and the hosts wasted a hatful of chances early in the second half.

Mikael Ellertsson fired wide when he should have scored, Gudjohnsen smacked a shot against the bar and Johann Berg Gudmundsson forced Ward into a wonderful save.

From the subsequent corner, Wales were unable to clear and Tomasson found the bottom far corner with a left-foot effort.

Three minutes later, Tomasson latched on to Jon Dagur Thorsteinsson's backheel, got past Connor Roberts and hit a low cross which hit Ward and went in.

Iceland should arguably have gone on to win the game, and they went closest to doing so when Thorsteinsson's shot hit the post.

Wales offered nothing in attack in the second half and, by the end of the game they were simply holding on for a draw.

They would have expected more against a team 42 places below them in the world rankings and, although Bellamy remains unbeaten, he will be looking for a convincing response when Montenegro visit Cardiff City Stadium on Monday.