All eyes are on Venezuelan President Nicolás Maduro, who was captured by US special forces in Caracas and flown aboard the USS Iwo Jima to New York, where he now faces federal drug trafficking and narcoterrorism charges. The 63-year-old leader pleaded not guilty in Brooklyn federal court alongside his wife, with prosecutors pursuing charges that could carry a life sentence. The operation has already drawn condemnation from the United Nations, which warned it violated the UN Charter and set a dangerous precedent, though US courts have historically dismissed immunity claims by foreign leaders. The seizure of Maduro has rattled governments worldwide by exposing how little protection international law offers against unilateral action by a hyperpower. Analysts warn the episode could push smaller states to rethink their security strategies, with some viewing nuclear deterrence as the only credible safeguard of sovereignty in an increasingly unstable global order.

EQUITY

Stocks closed higher, with the Dow hitting a record high after climbing 600 points, signalling markets' openness to the U.S. capture of Venezuela’s leader and the opportunity to exploit its oil reserve. Chevron was seen spiking 5.1% in anticipation of expanded operations, while JPMorgan, Citi, and NY Mellon rallied as many diversified away from tech into financial sectors, with the Nasdaq banking index growing 2.4%.

GOLD

Gold price shot to a one-week high and is hovering around $4,460 with renewed safe-haven demand and escalating geopolitical tensions. President Donald Trump declared that Washington would temporarily “run” Venezuela; it reminds other countries that sovereignty can only exist parallel to U.S. goodwill. Analysts at UOB point toward unusual price swings and rising implied volatility in late 2025 as red flags, maintaining a bullish long-term forecast.

OIL

Crude oil closed higher on Monday following the capture of Maduro and disruption of its oil infrastructure, though the country's minimal output of less than 1% of global production left little to no dent to the market. However, heightened geopolitical risks from the US action set a dangerous precedent for sovereignty violations and oil power dynamics.

CURRENCY

The greenback is on a rollercoaster, retreating from a three-week high as weak December manufacturing data and no significant bet for January cut. The yen is strong against the dollar, with hawkish BOJ signals and soaring Japanese bond yields supporting the currency. Growing concerns are building over potential dovish leadership at the Fed and increased systemic liquidity from the central bank's $40 billion monthly T-bill purchases.