Shares in US energy companies experienced a notable surge following the US seizure of Venezuelan President Nicolás Maduro, as investors anticipated new opportunities to access Venezuela's substantial oil reserves.

Chevron's shares opened more than 4% higher, building on a pre-market surge of over 7%. ConocoPhillips and ExxonMobil also saw gains, reflecting investor optimism about the potential for increased oil production from Venezuela. The geopolitical shift also impacted other markets, with precious metal prices and defense stocks rising amid heightened uncertainty. Gold increased by approximately 1.9% to $4,412 (£3,275) per ounce, while silver rose by 3.6%, as investors sought safe-haven assets.

The rise in precious metal prices highlights a typical market reaction to geopolitical instability. Gold, in particular, is often viewed as a safe store of value during times of uncertainty. Last year, gold saw its best annual performance since 1979, climbing over 60% and reaching a record high of $4,549.71 on December 26. This surge was attributed to factors such as anticipated interest rate cuts, significant bullion purchases by central banks, and broader investor anxieties about the global economy.

The potential opening of Venezuelan oil reserves could significantly alter the global energy landscape. Venezuela holds some of the largest proven oil reserves in the world, but production has been hampered in recent years by political instability and economic challenges. US oil companies, with their technological expertise and financial resources, are well-positioned to revitalize Venezuelan oil production if sanctions and political barriers are removed.

Looking ahead, the situation remains fluid. The long-term impact on oil markets will depend on the stability of the new Venezuelan government, the lifting of US sanctions, and the willingness of US companies to invest in the country. The events underscore the intricate relationship between geopolitics and financial markets, demonstrating how political events can rapidly reshape investment strategies and asset valuations.