With the Imperial Diet authorizing defensive measures, Leon prepared for a potential naval showdown with Venice—recognizing that this might be inevitable after repeated attempts at diplomacy had been met with bad faith tactics.
Working closely with imperial admirals, Leon deployed warships to strategic chokepoints along the coastlines—signaling readiness while avoiding provocative actions that could trigger an immediate conflict. He also authorized limited counter-intelligence operations to disrupt Venetian preparations and identify potential collaborators within the empire.
Meanwhile, Isabella uncovered evidence that Foscari had been using coded messages transmitted through merchant vessels to coordinate with Venetian naval forces—revealing a sophisticated command structure extending far beyond what was publicly known.
She managed to intercept several of these transmissions—providing precise locations and timelines for planned movements that allowed imperial patrols to anticipate Venetian deployments and maintain defensive positions without escalating tensions unnecessarily.
As the standoff continued, Leon received an unexpected offer from England's King Henry—who proposed a joint naval exercise in neutral waters as a show of force designed to deter aggression while maintaining diplomatic channels open.
Leon recognized this as a clever way to signal resolve without triggering outright war—and accepted the proposal after ensuring it would not compromise imperial security or violate international protocols. The combined fleets conducted several days of simulated engagements—demonstrating their coordinated capabilities while avoiding actual hostile contact.
Meanwhile, Venetian merchants began reporting shortages and disruptions in supply chains—evidence that Leon's economic counter-measures were having an impact despite Foscari's efforts to downplay the situation through propaganda and misinformation.
Several key trading partners also announced they would be imposing reciprocal measures against Venice if it initiated hostilities—signaling a growing international consensus against its coercive tactics.
As tensions reached their peak, a minor incident occurred when a Venetian merchant vessel strayed into imperial waters while attempting to evade patrols—leading to a brief but tense confrontation before the ship was escorted back to neutral territory.
Leon recognized this could be used as pretext for war by either side—but carefully managed the response to de-escalate the situation and emphasize his commitment to avoiding unnecessary bloodshed. He publicly stated that the incident was regrettable but not intentional—and reaffirmed his willingness to continue negotiations in good faith.