Longish explanation. Back when I wrote the first installment I forgot Zhao was a rival, not initially part of Zuko's crew. But then I came up with this for the fic: Ozai puts Zhao in charge of Zuko's ship to keep an uncomfortably close eye on Zuko and instill more fear in him, but tells Zuko "He's a good strategist and he felt pity for you". Zuko eventually finds out the truth before the series begins, kicks Zhao off the boat, come canon they have their bitter rivalry. Hope it makes sense!
*
It had not been a good day. At least Zhao had finally stopped playing them for fools and exposed himself as the traitor he was, Iroh thought bitterly. After ordering him to leave the ship, Zuko had locked himself in his cabin and refused to come out. Any attempts to come in and talk to him were rebuffed harshly.
"I hope he drowns," Mai said, throwing down her chopsticks and pushing her half-full bowl of rice away. "I hope he drowns and freezes and they never recover his body." Her words and the bite of her tone would have surprised Iroh were he not thinking the same thing.
"I wish I'd said something when Ozai first insisted he come with us," he sighed.
"Why didn't you?" Mai asked.
"Prince Zuko was so relieved that one of Ozai's most trusted men was on his side, taking it as a sign that his father did care about him after all," Iroh said. "I didn't want to destroy his only hope..."
"Then Zhao started to show his true colors," Mai said. "I always knew he was a jerk."
"Today was the last straw," Iroh said. "I'd never seen Prince Zuko as crushed as he was when Zhao finally revealed Ozai's intentions, word for word..."
"Shouldn't we go talk to him?" Mai cast a worried glance in the direction of Zuko's cabin. Iroh stood up, his face heavy with sadness.
"I suppose so."
*
Fortunately, Zuko did let them in this time. His rage gone, now he sat as still as a statue on his bed.
"Zuko..." Mai swallowed. "I...hey, at least it can't get worse, right?" she offered lamely.
"It's hopeless."
He turned to face them, tears streaming down his cheeks.
"How couldn't I see it all along? I'm such an idiot," he said, his voice empty and pitiful. Mai and Iroh quickly sat down on either side of him and drew him into their embrace, Iroh rubbing his back soothingly as he cried into Mai's shoulder.
They stayed with him like that for the rest of the evening.
