The lack of Western condemnation regarding the recent U.S. military intervention in Venezuela is raising concerns about potential economic and geopolitical repercussions, particularly regarding China and Russia's future actions. Emily Thornberry, chair of the Commons foreign affairs committee, warned that the silence could embolden these nations to pursue similar interventions, potentially destabilizing global markets and trade relationships.

The immediate financial impact of the Venezuelan situation remains limited, but the longer-term implications are significant. Venezuela's oil production, already crippled by years of mismanagement and sanctions, currently hovers around 700,000 barrels per day, a fraction of its peak output. Further instability could disrupt this supply, potentially impacting global oil prices, which currently trade around $80 per barrel. A significant price spike could trigger inflationary pressures worldwide, impacting consumer spending and corporate profitability.

The market context is crucial. China and Russia have significant economic interests in various countries, including resource-rich nations in Africa and Latin America. China's Belt and Road Initiative, a massive infrastructure development project spanning numerous countries, relies on stable political environments. Similarly, Russia's energy exports are vulnerable to geopolitical instability. A perceived weakening of international law could encourage these nations to exert greater control over their investments and trade partners, potentially through interventions that prioritize their economic interests.

Venezuela's economic woes stem from a combination of factors, including nationalization of key industries, price controls, and corruption. The country's once-thriving oil sector, previously a major source of revenue, has been decimated, leading to hyperinflation and widespread poverty. The current political crisis further exacerbates these problems, hindering any potential for economic recovery.

Looking ahead, the lack of a unified international response to the Venezuelan situation could have far-reaching consequences. Businesses operating in politically sensitive regions face increased uncertainty, potentially leading to reduced investment and slower economic growth. The erosion of international norms could also trigger a new era of geopolitical competition, with China and Russia potentially challenging the existing world order and creating new trade blocs and alliances. The long-term impact on global markets and international business remains highly uncertain, but the potential for increased volatility and disruption is undeniable.