Við skálum núna af því að við þurfum að heiðra þig.

Breakdown of Við skálum núna af því að við þurfum að heiðra þig.

þú
you
við
we
núna
now
to (infinitive marker)
þurfa
to need
af því að
because
heiðra
to honor
skála
to toast

Questions & Answers about Við skálum núna af því að við þurfum að heiðra þig.

Since we are learning about exhortations, could við skálum mean Let's toast here?
Yes, absolutely! For most verbs, the first-person plural (we) form is identical in both the present indicative and the present subjunctive. So við skálum can mean either we are toasting (as translated here) or let us toast, depending entirely on the context.
Why do we use af því að for because instead of just því or vegna þess að?
Af því að is the most standard, everyday way to say because in spoken Icelandic. Vegna þess að means exactly the same thing but sounds slightly more formal. You could also just use því, which is a bit shorter, but af því að is a perfect fit here.
Why is there an between þurfum and heiðra if the translation says must honor?
While English translates this as must honor, the Icelandic verb þurfa literally means to need. Just like in English where you say need to honor, þurfa always requires the infinitive marker before the following verb.
Why does the sentence end with þig rather than þér?
The verb heiðra (to honor) takes an object in the accusative case. Therefore, the basic pronoun þú (you) changes to its accusative form, þig.

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