I suspended iodine over steel nails. What are these droplets that formed?
Iodine vapors combine with iron to form iron(II) iodide:$$\ce{I2 + Fe-&gt;FeI2}$$ In an anhydrous form the compound is dark red-purple. But iron(II) iodide is hygroscopic and deliquescent which means that it dissolves in moisture it absorbs from the air, and forms those droplets. This complicates a bit the chemistry of the droplets - the $\ce{Fe^2+}$ ion exists most likely in a form of various aquo-, hydroxo- and iodo- complexes. Also, when an iodide anion and elementary iodine are present together they form triiodide anions:$$\ce{I- + I2-&gt;I3-}$$ Therefore, the droplets are a solution of a rather complicated mixture of iron and iodine compounds.