Shares in major US oil companies rose sharply following a dramatic escalation in Washington’s confrontation with Venezuela, as investors moved to price in the possibility of expanded access to the country’s vast oil reserves and a reset of long-frozen energy and debt relations.

In early trading, shares in Chevron surged by around 8 per cent, reflecting optimism that US energy firms could benefit from a shift in US policy towards Venezuela. Chevron is already operating in the country under a licence granted by the Trump administration, and investors see the latest developments as potentially clearing the way for deeper involvement by US oil companies.

The market reaction followed a US strike on Venezuelan targets and confirmation that former president Nicolás Maduro is expected to face drug trafficking charges in a New York court on Monday. US President Donald Trump warned that further military action could follow unless Venezuela’s new leadership “behaves”, while predicting that events in Caracas could also destabilise Cuba’s regime.

Venezuela’s sovereign bonds rallied sharply, extending gains made over the past year. Traders said the removal of Maduro, long seen as an obstacle to negotiations, could open the door to a long-awaited restructuring of the country’s defaulted debt. Venezuela’s bonds have surged by roughly 25 per cent, reflecting growing expectations that international creditors may finally have a counterpart capable of negotiating.

However, investors cautioned that uncertainty remains high. Delcy Rodríguez, who has emerged as Venezuela’s de facto leader, issued a conciliatory statement offering to collaborate with the US, but questions persist over the legitimacy and durability of the new political arrangement. Fixed income investors warned that while Maduro’s removal is a necessary condition for a debt deal, it does not guarantee political stability.

Beyond oil stocks and bonds, broader markets reacted to the rise in geopolitical risk. Gold prices climbed above $4,400 per troy ounce, while silver jumped nearly 5 per cent as investors sought safe-haven assets. US Treasury yields were little changed, suggesting markets are still weighing whether the situation will escalate further or stabilise.

For energy markets, the developments revive a long-running question: whether Venezuela’s enormous oil reserves could once again play a meaningful role in global supply. While years of underinvestment and infrastructure decay mean any production increase would take time, the prospect of US capital and refining capacity re-entering the country has clearly altered market expectations.