Shares in US energy companies experienced a 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, following a pre-market surge exceeding 7%. ConocoPhillips and Exxon also saw gains, reflecting investor optimism about the potential for increased oil production from Venezuela. Concurrently, geopolitical uncertainty spurred a rise in precious metal prices and defense stocks. Gold increased by 1.9% to $4,412 (£3,275) per ounce, and silver rose by 3.6%, as investors sought safe-haven assets.

The market's reaction underscores the sensitivity of energy markets to geopolitical events. The expectation is that a change in Venezuelan leadership, facilitated by US intervention, could lead to a more favorable environment for US oil companies to operate in the country. Gold's performance last year, its best since 1979 with a 60% increase and a peak of $4,549.71 on December 26, illustrates the ongoing demand for safe-haven assets amid global economic and political instability.

Venezuela holds some of the world's largest proven oil reserves, but production has been hampered by political instability, corruption, and economic mismanagement. US oil companies have historically had a significant presence in Venezuela, but their operations have been curtailed in recent years due to the challenging political and economic climate.

The future outlook for US oil companies in Venezuela hinges on the stability of the new political order and the willingness of the US government to ease sanctions. If these conditions are met, US companies could significantly increase their oil production, potentially impacting global oil prices and energy security. However, the situation remains fluid, and investors should carefully consider the risks associated with investing in Venezuela.