Why isn't Azure VM website displaying images?

So I have an issue with Azure VM not displaying any images on my webpage... I have Index.html in the /var/www/html/ folder and the image in the same folder. I've linked to the image in the html file with:

<img src="sunsetforbackground.jpg" alt="background image">

But it doesnt even display on the page. I went to "inspect" on the website and to "sources" where the image was located but when trying to open it in a new tab gave a blank screen.

note: The html file works on my computer fine just not on the server.

I am running the latest ubuntu with nginx and my file permissions are code 777 when I edit the site and 755 when i'm not so permissions shouldn't be an issue...

Help would be greatly appreciated!