Fusion of passive and active measurements from sensor nodes becomes critical in localizing underwater objects and is traditionally achieved by communicating information to a central node. This causes significant inefficiencies in bandwidth, energy, and processing time, which are critical in marine applications. With integrated sensing and communication (ISAC) systems, the process of sensing, localization, and communication can be achieved jointly, and the inefficiencies can be minimized. Thus, the primary objective of this study is to analyse the efficacy of such communication signals in localizing a moving target in given underwater conditions. The Cram\'er-Rao Lower Bound (CRLB) is a performance metric used to determine the theoretical lower bound on localization errors. Simulation results illustrate the contours of localization error across various scenarios, offering valuable insights into system performance under different target dynamics and sea state conditions, showcasing their potential for efficient and reliable underwater localization applications.