The first years of Ismail's reign were marked by conflict with the deposed Nasr,

who called himself "King of Guadix" and ruled the city independently.[9] He accused
Ismail of violating his guarantee of Nasr's security and enlisted the help of his
relatives and servants to attempt to regain the throne.[9] He was also supported by
the exiled North African princes Abd al-Haqq ibn Uthman and Hammu ibn Abd al-Haqq,
who followed him to Guadix.[13] Ismail put his border regions on alert to
anticipate Castilian interventions in favour of Nasr, whom the Castilian king
considered to be his vassal.[23] He also appointed Uthman ibn al-Ula as the
commander of the western section of the jund (regular army), in charge of facing
the Castilian threat, in addition to his post as the commander of the Volunteers of
the Faith.[24]

Ismail laid siege to Guadix in May 1315 but left unsuccessfully after 45 days.[9]
Nasr requested help from Castile and Aragon: King James II of Aragon did not pledge
any specific assistance, but Peter summoned the nobles of Castile in the spring of
1316, securing support for a military campaign in Granada.[25] Castile sent a
supply column to Nasr, again besieged in Guadix, but it was intercepted by Granadan
forces led by Uthman ibn Abi al-Ula, resulting in a major battle on 8 May at
Guadahortuna/Wadi Fortuna near Alic�n.[9][25] Contemporary Muslim and Christian
sources disagreed on the victor of this battle, but modern historians have
concluded that Castile won the battle: Harvey and Fern�ndez-Puertas infer that the
Castilians achieved a narrow victory based on the fact that they advanced closer to
Granada after the battle,[1][26] while Joseph F. O'Callaghan wrote that it was a
"complete victory" which resulted in the death of 1,500 Muslims.[27] Ismail was
forced to lift the siege and withdraw to Granada, and in the following month Peter
captured various castles, including Cambil, Alhamar, and Benaxixar, and burned the
outskirts of Iznalloz.[26][27] Meanwhile, Ismail allied himself with Yahya ibn Abi
Talib, the Azafid governor of Ceuta, who defeated Castile in a naval battle and
then laid siege to Gibraltar. The siege was abandoned when Castile sent a relief
force.[9][28] Later in the summer of 1316, Peter and Ismail agreed to a truce until
31 March 1317.[27]