Go to the Karloon North shrine.

Idura's in trouble

You're going to fight him now, same tactics as before: ice and water attacks.

Iris has once more been captured. However, you can't cast escape to get out.

Iris explains what might be going wrong. Get out of there, the room under the place where you teleported (the locked door) will now be open. Go there.

Once you do find the place, you find out that its a trap!

You are forced to escape without Dekar...

Maxim and the others vow to keep on fighting... Go east to get to Treadool.