Sit back and watch the thieves dash through Sand City Sultan. When Hawk enters the room, you have control. Open the chest, taunt the businessman, then jump out the balcony door. The cutscene continues.
When the cutscene completely ends, you now have an opportunity to explore. You should definitely explore this place, as you will be coming back here much later in the game. Anyway, you need to find Eagle. His room is the easternmost room in the fortress. You'll have to go outside through a balcony to reach it.
From the outside, you can see Eagle pacing through his window. Go in and talk to him. Agree with him and he'll storm off to Flamekhan's bedroom. Go meet him there. The room is to the right of the throne room.
Watch Isabella talk with the strange vampire-like man, then fight Eagle. Don't worry, you won't actually kill him. Just hit A until he gets knocked out. Isabella will then cast Fireball on him, and kill him. Now, watch the cutscene.
Wow. Sucks, huh? You've been framed. Poke the jail door, or poke the rear wall. Stuff will happen. After Nikita lets you out, leave Navarre. Try not to get killed by ninjas.
Watch the credits roll, and laugh at how much of what you just did was scripted.