Markets climb despite U.S. capture of Venezuela's Maduro

Monday 05 January 2026 - 15:50

By: Dakir Madiha

Markets climb despite U.S. capture of Venezuela's Maduro

Financial markets shrugged off the U.S. forces' weekend seizure of Venezuelan President Nicolás Maduro, with stocks advancing and oil prices steadying on Monday as investors gauged the limited immediate economic fallout from the bold military move.

U.S. special forces snatched Maduro and his wife early Saturday in Caracas, in what President Donald Trump hailed as one of America's "most stunning displays of military power" ever. Codenamed Operation Absolute Resolve, it involved over 150 aircraft and Delta Force troops the boldest Washington intervention in Latin America since the 1989 Panama invasion. Maduro was flown to New York to face narcoterrorism charges and appeared in federal court Monday.

Geopolitical jitters aside, Asian stocks surged, led by Japan's Nikkei 225 which leaped 3 percent to 51,832.80 its highest close since October. South Korean markets rose 3.4 percent to records, tech shares rebounding regionwide on AI optimism. U.S. stock futures edged higher, energy firms leading gains after Trump's pledge that American oil companies would pour "billions of dollars" into Venezuela's oil infrastructure revival.

Chevron, the lone major U.S. oil operator in Venezuela, jumped 7 to 8 percent in premarket trading. Other energy plays soared: SLB up 8 to 10 percent, Halliburton climbing 10 percent, ConocoPhillips gaining 7 to 8 percent, and Baker Hughes advancing nearly 7 percent.

Oil prices dipped despite the upheaval, with Brent crude falling to around 60 dollars per barrel and West Texas Intermediate to about 57 dollars. Analysts chalked up the muted response to Venezuela's shrunken market role producing roughly 1 million barrels daily, under 1 percent of global supply. "The economic impact from Venezuela is too small to weigh on equity markets," said Christopher Dembik, chief investment strategist at Pictet Asset Management. Goldman Sachs held its 2026 oil price forecasts at 56 dollars for Brent and 52 dollars for WTI, citing short-term supply disruptions as minimal.

Venezuela holds the world's largest proven oil reserves at 303 billion barrels, but years of underinvestment and sanctions have crippled output from a 1990s peak of 3.5 million barrels per day. Analysts say restoring production would take years and billions in spending.

Investors flocked to safe havens, gold surging 1.8 to 2.2 percent above 4,400 dollars per ounce amid geopolitical uncertainty. The precious metal extended its best annual run since 1979, up over 60 percent in 2025. Silver climbed nearly 4 percent, the dollar firmed slightly.

Trump stated the U.S. would "run" Venezuela until a "safe, proper, and sensible transition," with interim President Delcy Rodriguez set to be sworn in. The raid drew condemnation from Russia, Cuba, and Iran, raising broader questions about regional stability. "This reminds us geopolitical risks loom much larger than any import number," said Vishnu Varathan, head of macroeconomic research at Mizuho Bank in Singapore. "The question is whether Latin America's overall stability is at risk."