Edward thinks that Mortimer and Lancaster are libelling Gaveston. Gaveston arrives to a warm welcome from Edward and a cold shoulder from everyone else. He dismissis the nobles. Lancaster draws his sword and Mortimer wounds Gaveston. Edward tries to banish Mortimer from the court, but he refuses to leave because of the king's favourite.
Threats are uttered on both sides and the nobles decide to withdraw to their castles.
They're out for blood - Gaveston's. News comes that Mortimer Senior has been captured by the Scots and is being ransomed for 5000. Mortimer will go to the king to get the money. He and Lancaster are barred by a guard. When Edward does see them he isn't inclined to pay the ransom but does give his permission for money to be raised from the people.