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- Tensions are high in South America after the US took and transferred Venezuela’s President Maduro from Venezuela to New York, sparking volatility in commodities.
- The US will cooperate with Venezuela’s acting President Rodríguez to help rebuild the country after years of economic collapse and mismanagement.
- Gold and silver shone on safe-haven demand, while oil remained under pressure due to inventory build-up and OPEC’s latest decision.
Commodities markets reacted to a fresh wave of geopolitical tensions after the United States carried out a surprise military operation in Venezuela, triggering heightened volatility across oil and precious metals.
Concerns are rising over oil supply disruptions, while precious metals such as gold and silver gained following increased safe-haven demand.
The Situation in Venezuela
On Saturday, a surprise US operation saw Venezuelan President Nicolas Maduro and his wife taken from Venezuela to New York to face federal charges.
Delcy Rodríguez, Venezuela’s oil minister, took Maduro’s place, appointed by Venezuela’s high court to lead the government on an interim basis. ⁽¹⁾
Rodríguez asked the US to work with the country, striking a more engaging tone toward the Trump administration after her initial outrage at the capture of President Nicolás Maduro. ⁽²⁾
After the operation, President Donald Trump said a team of US officials would “run” the country and that Rodríguez would work alongside them. Trump also repeated his statement that the US needed access to Venezuela’s oil to rebuild the country. ⁽³⁾
Earlier Tensions
High tensions between Venezuela and the US are not something new. Political rifts had been rising dramatically since late 2025 as the US increased its military presence around Venezuela and raised economic pressure on Maduro. The US also imposed sanctions on Venezuelan oil companies and even seized oil tankers. ⁽⁴⁾
Venezuela Cuts Oil Production due to US Embargo
Venezuela has begun cutting oil production as US blockades have slashed exports, filling storage capacity. Chevron’s exports from Venezuela to the US had been an exception, continuing to move because the company has a license from Washington for its operations. ⁽⁵⁾
Venezuela’s oil facilities were not targeted by the US, but the country’s state-run oil company PDVSA is struggling to maintain operations and has been forced to sell oil at discount prices. ⁽⁶⁾
Venezuela has produced around 1 million barrels per day and was estimated to export 950,000 barrels per day in November, but only exported 500,000 barrels due to the US blockade. ⁽⁷⁾
Gold and Silver Shine, Oil Drops
Gold rose 2% earlier today, while silver gained more than 3.6% as heightened geopolitical tensions increased safe-haven demand for precious metals. Oil also came under pressure after Sunday’s OPEC+ decision to keep production levels unchanged. ⁽⁸⁾
Other than geopolitical tensions, precious metals were also driven by other macro factors. Gold posted its best annual performance since 1979 with support from central bank buying and ETF inflows. Rate cuts from the Federal Reserve also supported metals.
Silver rose 150% in 2025 following supply disruptions, high industrial and investment demand, and other macro factors. China, which produces 70% of global silver, also imposed a ban on silver exports this year. ⁽⁹⁾
