Orsted shares surged 7.3% to 135.35 kroner Monday as analysts predict reduced risk of U.S. regulatory interference with its East Coast offshore wind projects. The Danish firm’s stock has gained over 25% this year after Trump administration officials signaled reluctance to block construction of two key U.S. wind farms despite earlier halts.

Last year, President Trump suspended five offshore wind initiatives, including Revolution Wind and Sunrise Wind, citing environmental and economic concerns. Monday’s rally followed Bank of America’s assessment that political headwinds against the projects have diminished, though the administration has yet to formally reverse course.

Crucially, a federal judge’s ruling this year allowed operations to resume at Revolution Wind off Rhode Island’s coast, and the administration opted not to appeal. This legal development has bolstered investor confidence in Orsted’s ability to proceed with its U.S. projects, which include 10 gigawatts of offshore capacity.

The rebound underscores how policy uncertainty previously weighed on renewable energy stocks. With wind farm contracts valued at billions of dollars at stake, even minor shifts in regulatory sentiment can trigger market swings, analysts note.