In a stunning turn of events that has reshaped global energy markets overnight, the U.S. military’s daring operation to capture Venezuelan President Nicolás Maduro and his wife, Cilia Flores, on January 3 has triggered a powerful surge in oil stocks, propelling Wall Street to kick off 2026 with record-breaking gains.
The audacious raid, dubbed “Operation Absolute Resolve,” involved over 150 U.S. aircraft dismantling Venezuelan air defenses while elite Delta Force teams stormed Maduro’s compound in Caracas. President Donald Trump, who monitored the operation live from Mar-a-Lago, announced the success shortly after, declaring that Maduro—long indicted on U.S. narco-terrorism and drug trafficking charges—would face justice in New York. Maduro and Flores were flown to the U.S., where they pleaded not guilty in Manhattan federal court on January 5 to charges including narco-terrorism conspiracy and cocaine importation.
The immediate market reaction was electric. On Monday, January 5, the Dow Jones Industrial Average soared nearly 600 points to a new all-time high, closing up 1.2%. The S&P 500 gained 0.6%, and the Nasdaq rose 0.8%, snapping recent losses. Leading the charge was the energy sector, as investors piled into bets on renewed access to Venezuela’s massive oil reserves—the largest proven in the world, estimated at over 300 billion barrels.
Key performers included:
- Chevron (CVX), the only major U.S. oil company with ongoing operations in Venezuela, jumping as much as 6.3%.
- ConocoPhillips (COP) and Exxon Mobil (XOM) rising around 6% and 3%, respectively.
- Refiners and service providers also shone brightly, with broader energy shares driving the rally amid expectations of U.S. firms rebuilding the nation’s crumbling infrastructure.
Crude oil prices climbed in response, with Brent crude up 1.2% to $61.48 per barrel and West Texas Intermediate gaining 1.4% to $58.11. President Trump has vowed that major American oil companies will invest billions to revive production, which has plummeted under years of sanctions and mismanagement to below 1 million barrels per day.
Energy Secretary Chris Wright is set to meet with oil executives this week to discuss ramping up operations. Analysts warn that full recovery could take years and substantial capital, but the short-term optimism reflects confidence in potential supply increases from heavy crude ideally suited for U.S. Gulf Coast refineries.
Geopolitical risks remain elevated. Acting Venezuelan President Delcy Rodríguez has condemned the operation as a violation of sovereignty, while international reactions vary—some allies praise the move against an indicted leader, others decry it as unlawful intervention. The UN Security Council convened to debate the raid’s legality, with experts highlighting precedents like the 1989 capture of Panama’s Manuel Noriega.
Venezuelan bonds rallied sharply as traders anticipated debt restructuring under new leadership, and even cryptocurrency markets perked up, with Bitcoin climbing above $94,000.
This seismic shift underscores the interplay between geopolitics and commodities. While uncertainties linger over Venezuela’s interim government and potential disruptions, Wall Street’s enthusiastic response signals strong belief in unlocked energy opportunities ahead. Investors are watching closely as 2026 unfolds with this bold opening salvo in global markets.
