Geopolitics & Global Markets

Venezuela Regime Collapse Shakes Global Markets, Boosts Oil and Gold

Global financial markets reacted with heightened volatility following the collapse of the Venezuelan regime after a US-led operation. Rising geopolitical tensions increased demand for safe-haven assets such as gold and supported defense-related stocks amid growing security concerns.

Venezuela holds the world’s largest proven oil reserves, surpassing Saudi Arabia, placing the energy sector at the center of market attention. Following statements from the US president indicating that the United States would assume control over Venezuelan oil reserves, shares of major US oil companies surged.

The United States is expected to receive up to 50 million barrels of Venezuelan oil, valued at several billion dollars, while maintaining control over production for an indefinite period. This development contributed to a roughly 1.5% rise in oil prices, benefiting US energy exports.

Despite initial optimism, analysts warn that restoring Venezuela’s oil industry will be challenging after years of underinvestment and infrastructure deterioration.