As you might be aware of, there are geological disturbances in Iceland on the south coast of the Reykjanes peninsula, which started with an eruption on the 19-Mar-2021. Recently the disturbances have moved and are currently focused around the small town of Grindavik and the Blue Lagoon.
The organisers would like to state that the route does not go anywhere near where the Department of Civil Protection and Emergency Management has normally closed roads to the Grindavik area.
The red circle on the image shows where the center of these disturbances is, although it moves around a bit.
The distance from there to Keflavik airport is just under 20km and has not affected flight to and from Iceland.
The distance to Reykjavik is around 35km and the disturbances have not really been experienced in Reykjavik.
Geologists estimate the disturbances will continue for the next several years, but should not affect the rally.