Financial analysts have issued a stark warning that global oil prices are set for a significant increase in the wake of a dramatic military operation authorised by former US President Donald Trump against Venezuela.
The Raid and Its Immediate Aftermath
The event, which has sent shockwaves through international circles, saw Venezuelan President Nicolas Maduro captured and extradited. A Delta Force unit reportedly seized Maduro from a safe house in central Caracas during the night. He is now detained in New York, facing serious drug-trafficking charges.
The Trump administration has stated its intention to oversee governance in Venezuela until what it describes as a "safe and judicious transition of power" can be achieved. This unprecedented move has been condemned by many as a direct violation of national sovereignty.
Expert Analysis: A Policy Set to Backfire
Speaking to Newspage, Anita Wright, a Chartered Financial Planner at Ribble Wealth Management, provided a grim assessment. "Trump's renewed 'Monroe Doctrine' posture is likely to backfire," she stated. Wright argued that despite Maduro's capture, his government remains, potentially with a strengthened resolve to resist.
She further warned that the action risks a "costly, protracted US entanglement" close to home, undermining long-term US hegemony in the region. For investors, Wright pointed to heightened geopolitical risk, advocating for traditional hedges. "Geopolitical risk and financial fragility point to further upside in 'real money' hedges which are gold and silver," she advised.
Market Consequences and a 'Shredded' Rulebook
The most direct economic impact, according to experts, will be on energy markets. "Other than short-term fluctuations, the oil price will almost certainly rise at the prospect of Venezuelan oil supplies being interrupted," Wright confirmed. This anticipated surge stems from fears of supply disruption, outweighing longer-term prospects of increased American-controlled output.
Rohit Parmar-Mistry, Founder of Burton-on-Trent-based Pattrn Data, offered a blunter critique. "Let's strip away the diplomatic gloss: a sovereign leader has been snatched in the night. That's not foreign policy; it is a hostile takeover," he said.
Parmar-Mistry emphasised the global precedent set, suggesting that any nation rich in critical resources like oil, gold, or rare earths could now be vulnerable. "The international rulebook hasn't just been rewritten; it's been shredded," he declared. He also cast doubt on the strength of the US Dollar's current rally, calling it "brittle" and built on "muscle, not fundamentals."
The consensus from finance professionals indicates that while the US action may project immediate strength, it carries substantial long-term risks for economic stability and America's financial standing, with the UK and other nations watching the pressure on the Dollar closely.
