US oil stocks surged after Venezuelan President Nicolás Maduro was arrested by US forces, raising hopes that Washington would gain access to Venezuela's vast oil reserves. Shares of US energy and defense companies rose across the board, while gold and silver – safe-haven assets – also gained. Despite escalating geopolitical tensions, the overall market maintained confidence. Brent crude prices edged higher as traders assessed the risk of supply disruptions from Venezuela.
Chevron and ConocoPhillips lead the energy sector's rally.
Chevron shares rose more than 7% in pre-market trading and opened 4% higher, fueled by expectations of expanded access to Venezuelan oil. ConocoPhillips and ExxonMobil also gained, reflecting hopes for new drilling opportunities following Washington's intervention. Spanish energy company Repsol rose 2%, while Halliburton surged more than 7% in the oil and gas services sector.
President Donald Trump confirmed plans to meet with oil industry leaders to discuss increasing Venezuelan oil production, according to Reuters. He said the U.S. would temporarily manage Venezuela and stressed a “safe, proper, and prudent” transition process. Analysts believe U.S. businesses could benefit, despite Venezuela’s severely degraded oil and gas infrastructure. Former BP CEO Lord Browne argued that restoring Venezuela’s oil industry would “require a great deal of skill, Capital , and time,” while OCBC Bank noted that Venezuela currently contributes only about 1% of global oil production, so short-term increases may be limited.
Defense stocks and precious metals both rose.
Defense stocks surged in Europe and the U.S. as investors reacted to heightened geopolitical risks. BAE Systems rose 5% in London, while Rheinmetall gained more than 8% in Germany, reflecting expectations of increased government defense spending. According to Russ Mould of AJ Bell, the surge in demand for these stocks is “completely natural” following events in Venezuela.
Gold rose 1.9% to $4,412 per ounce, and silver gained 3.6% as money flowed into safe-haven assets. Spot gold hit a one-week high, while US gold futures rose 2.8% to $4,451.5 per ounce. Mining stocks followed the metal's gains, with Endeavour Mining and Fresnillo both rising more than 4%. The rally follows gold's projected 60% increase by 2025 – the strongest since 1979.
Stock indices rise, USD weakens.
Despite global tensions, stock markets continued to rise in early 2026. The Dow Jones index rose 1.23% to 48,977.18 points, reaching a new all-time high; the S&P 500 energy index hit its highest level since March 2025. The Nasdaq Composite rose 0.69% to 23,395.82 points; the MSCI global index gained 0.82%. In Europe, the STOXX 600 rose 0.94%, while emerging markets gained 1.51%. Japan's Nikkei 225 jumped 3% on positive manufacturing data.
Oil prices edged higher, with Brent closing at $61.76 a barrel and WTI at $58.32 a barrel. However, analysts warned that price volatility would depend on how long Venezuela remains under US control. The US dollar index fell 0.24% to 98.32; US Treasury yields edged lower, with the 10-year yield dropping to 4.165%. Investors shifted their attention to upcoming US economic data, including the December jobs report expected on Friday.
