Geopolitical tensions are rising again in early 2026. The US has launched ground attacks on Venezuela and captured its President Nicolas Maduro and his wife. Maduro and his wife Cilia Flores have been charged criminally in the Southern District of New York and have been brought to the city to face charges.
This move could impact many asset classes, from crude oil prices to precious metals. Venezuela not only has large reserves of oil, but also has a significant presence of gold and precious metals.
crude oil
Only last month, oil prices had fallen to a four-year low. But when US President Donald Trump intensified his rhetoric against Venezuela, and tensions increased in other regions like China and Taiwan, prices started rising again. By the time the market closed on Friday, Brent crude was above the $60 mark, but it has been falling for 3 consecutive days. It is most likely to fall when trading begins on Monday morning.
Venezuela has the largest reserves of crude oil, but its supply is limited due to several sanctions imposed on the country. The International Energy Agency has also warned of a major supply shortage in 2026, even if OPEC+ decides to reduce production in the new year.
gold and silver
When geopolitical tensions increase, investors always move from risk assets to safe assets like gold. 2025 was the best year for gold prices since 1979. Last year, gold prices increased by almost 70 percent. Now after the American attacks, gold will again be in discussion. According to reports, Venezuela has the largest gold reserves among South American countries and has 161 metric tons of gold. Its current value could be around $22 billion. Along with gold, America’s new move can also react to silver.
us dollar
The US dollar will also be in focus on Monday. 2025 was the worst year for it after 2017. A strong US dollar is generally negative for the Indian currency rupee and metals.
There can be a big reaction on Wall Street due to American attacks because America is directly involved in a conflict in this matter. This was not the case in the Russia-Ukraine war and Israel-Iran war in 2025. The possible negative reaction on Wall Street will also impact other global equity markets.
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