Antonio, continuing to hold the island possessions…

Antonio, continuing to hold the island possessions of Portugal, is supported by a number of French adventurers under Philip Strozzi, a Florentine exile in the service of France.

Alvaro de Bazán, marquis de Santa Cruz, had commanded the fleet that aided the Duke de Alba's conquest of Portugal in 1580, and three years later, at the Second Battle of Terceira, Santa Cruz defeats a superior French naval squadron sent unofficially to support a rebellion in the Azores against Philip II.

His victory is marred, however, by his execution of all French prisoners despite the protests of his own men.

This act does not prevent Philip II from appointing him “captain general of the ocean.” It is after this battle that Santa Cruz urges Philip II to undertake the invasion of England; his letter of August 9, 1583, written to the king from Angra do Heroísmo in Terceira, is generally considered as the first step in the creation of the Spanish Armada.