The Venetian victory and the demonstration of Genoese reluctance to confront them in battle had considerable political repercussions, as the Byzantines began to distance themselves from their alliance with Genoa and restored their relations with Venice, concluding a five-year non-aggression pact in 1268.

By this time, the Latin Empire was a weak remnant of its former self, but was backed by the naval might of the Republic of Venice, which contributed to the failure of two large-scale Nicaean attempts to capture the city in 1235 and 1260.

Seeking a way out, as well as a diplomatic coup that would bolster his own internal position against the Genoese nobility, the autocratic Captain of the People, Guglielmo Boccanegra, dispatched an embassy to Palaiologos offering an alliance.

The resulting Treaty of Nymphaeum, signed on 13 March 1261, obliged Genoa to furnish a fleet of 50 vessels, with their expenses paid by the Emperor, but in exchange secured very advantageous commercial terms; following a successful recovery of Constantinople, the Genoese stood to effectively inherit and even expand upon the privileged position that the Venetians held in the Latin Empire.

Nevertheless, Michael VIII scrupulously observed the terms of the Treaty of Nymphaeum, as Genoese naval strength was still necessary to confront a potential Venetian counterstrike while a native Byzantine fleet was slowly being re-established.

[11] Some time in early 1263, a Genoese fleet of 38 galleys and 10 saette,[a] crewed by some 6,000 men and commanded by four admirals, was sailing to the Byzantine fortress and naval base of Monemvasia in the south-eastern Morea.

[20] On the other hand, the Genoese navy generally failed to effectively confront its Venetian counterpart throughout the war; often, according to naval historian John Dotson, "because of divided or ineffective command",[20] which was also in evidence at Settepozzi.

[21] The historians Frederic Lane and Deno Geanakoplos explain the Genoese commanders' reluctance to risk their ships by pointing out that these were owned by private contractors, usually the rich noble merchants who ran the city, and thus constituted valuable assets for which the admirals were answerable.

However, the only Byzantine fleet commander attested by name during this time, Alexios Doukas Philanthropenos, was active in the Aegean islands, rather than along the coasts of the Greek mainland.

[37][38] Apart from the loss in lives and ships, the long-term ramifications of the defeat at Settepozzi were political: Michael VIII began to reconsider the alliance with Genoa, which was very costly but had so far brought little in return.

In the face of the threat from Charles of Anjou after 1266, Michael VIII was forced to renew his alliance with Genoa, but also maintained his détente with Venice, signing a five-year non-aggression pact in June 1268.