The Battle of Settepozzi took place in 1263 between a Genoese-Byzantine fleet and a smaller Venetian fleet. At the time, Genoa and the Byzantines were allied against Venice. The Genoese fleet, on its way to Monemvasia, encountered the Venetian fleet and decided to attack, but only two admirals and 14 ships participated. The Venetians easily defeated them, capturing four vessels and causing many casualties. This victory led the Byzantines to distance themselves from Genoa and restore their relationship with Venice. After Settepozzi, the Genoese avoided confrontations with the Venetians and focused on commerce raiding, but they suffered another major defeat at the Battle of Trapani in 1266. Michael VIII Palaiologos, the ruler of the Byzantine Greek Empire of Nicaea, wanted to recover Constantinople from the rival Latin Empire. The Republic of Venice, which backed the Latin Empire, had a strong navy, so Palaiologos formed an alliance with Venice's rival, the Republic of Genoa. Although Constantinople was recaptured without Genoese assistance, Palaiologos still upheld the alliance, as he needed Genoese naval strength to defend against a potential Venetian counterattack. Both Venice and Genoa remained passive after the recapture of Constantinople, but tensions escalated when Venetian and Genoese fleets met in the Aegean. Meanwhile, Byzantine forces faced defeat in their attempts to conquer the Principality of Achaea. In early 1263, a Genoese fleet met a Venetian fleet at the island of Settepozzi. The details of the battle are unclear, but it resulted in a clear victory for the Venetians. The Genoese fleet hesitated to engage, possibly due to the Venetians claiming immunity as crusaders, and also because the Genoese navy often had divided and ineffective command. The Battle of Settepozzi is believed to have taken place in the spring of 1263, with some historians suggesting either March or May as the most likely time. There is uncertainty regarding the involvement of the fleet that sailed from Genoa to reinforce the fleet in the Aegean, as it is not clear if they engaged in combat or if they were sailing to unite with another fleet. The identity of the two admirals who did not participate in the battle is unknown, but it is mentioned that one of them may have been Greek. After the Battle of Settepozzi, the surviving Genoese admirals, councillors, and pilots were condemned for their actions during the battle. The Genoese fleet then avoided direct confrontations with the Venetians and instead focused on raiding Venetian merchant convoys. However, in 1266, the main Genoese fleet was defeated and captured by the Venetians at the Battle of Trapani. The defeat had political implications as well, leading to strained relations between Genoa and the Byzantine Empire. The Byzantine Emperor, Michael VIII, began to reconsider the alliance with Genoa and eventually expelled the Genoese from Constantinople. He signed a treaty with the Venetians, but it was not ratified. In the face of threats from Charles of Anjou, Michael VIII was forced to renew his alliance with Genoa and also maintained a non-aggression pact with Venice.

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