US Stocks, Oil and Energy Shares Jump after Trump's Strike on Venezuela

• Major US stock indexes surged to record levels, and oil prices climbed as investors reacted with calm optimism to a dramatic US military operation that captured Venezuelan President Nicolas Maduro
• The Dow Jones Industrial Average soared nearly 600 points, and the S&P 500 energy index hit its highest level in nearly a year
• This surge was largely driven by speculation sparked by Donald Trumps statements that US oil companies could soon access Venezuela’s vast crude reserves

Elijah Ntongai, an editor at TUKO.co.ke, has over four years of financial, business, and technology research and reporting experience, providing insights into Kenyan, African, and global trends.

Financial markets on Monday largely shrugged off the geopolitical shock of the weekend strike, instead focusing on the potential for a seismic shift in global energy supplies.

President Donald Trump stated he was placing Venezuela under temporary US control and threatened further military action if the country did not cooperate with efforts to open its oil industry.

How did the major markets perform?

The reaction across asset classes was pronounced as the Dow Jones Industrial Average (.DJI) rose 594.79 points, or 1.23%, to close at a record 48,977.18. The S&P 500 (.SPX) gained 0.64% to 6,902.05, and the Nasdaq Composite (.IXIC) advanced 0.69% to 23,395.82.

The S&P 500 energy index (.SPNY) jumped to its highest level since March 2025. Shares of oilfield-services company Baker Hughes, refiners like Valero, and majors including Chevron, ConocoPhillips, and Exxon Mobil all rallied.

Defense stocks also climbed on the prospect of heightened geopolitical tensions.

In oil prices trends, Brent crude futures rose $1.01 to settle at $61.76 a barrel, while US West Texas Intermediate (WTI) crude gained $1 to $58.32.

Prices were volatile, initially falling before rebounding following Trump’s statements on the contropl of the Venezuelan oil reserves.

What is the driving force behind the market rally?

The bullish sentiment stems directly from President Trump’s statements and subsequent reporting after the capture of Maduro.

Trump said the US aims to “open up its oil industry,” and Reuters reported he plans to meet with executives from US oil companies later this week to discuss boosting Venezuelan oil production.

Commenting on the market trend on Monday, Economist Daniel Kathali noted that the rally reflects investors decision to view the geopolitical circumstances in Venezuela through a purely economic perspective.

“The rally demonstrates a market choosing to view the Venezuela intervention through an economic lens rather than a purely geopolitical one. The investors are choosing to focus on the potential for a new, major source of oil supply and opportunities for US energy firms. The market will most likely remain volatile because the the simultaneous rise in gold and defense stocks indicates a cautious approach and an aknoledgement that there are risks of escalating conflict in the region,” Kathali opined.

Venezuela sits on the world’s largest proven oil reserves, but its output has collapsed due to years of mismanagement, corruption, and US sanctions; therefore, the prospect of American capital and technology revitalising those fields sent shockwaves through the energy sector.

Which countries have the largest oil reserves?

The Organisation of the Petroleum Exporting Countries (OPEC) Annual Statistical Bulletin 2025 shows that Venezuela holds the world’s largest proven oil reserves at about 303 billion barrels.

However, its ability to export and monetise the resource remains constrained by years of sanctions, mismanagement, and underinvestment.

Middle Eastern countries continuing to dominate global reserves and supply, led by Saudi Arabia’s 267 billion.

Recent statements by US President Donald Trump following the capture of Nicolás Maduro signalling renewed American interest in Venezuela’s oil sector, though experts warn that restoring production will require massive investment, political stability, and years of work to reverse output declines that saw production fall to about 1.1 million barrels per day last year.

Source: TUKO.co.ke