US attacks Venezuela — The asset classes that are likely to see a reaction on Monday

Geopolitical tensions are back on the rise at the start of 2026, with the US launching land strikes on Venezuela leading to the capture of its President Nicolas Maduro and his wife.

The move is likely to have repercussions on various asset classes, from crude oil prices, to precious metals, as not only does Venezuela have abundant oil reserves, but also significant presence of Gold and precious metals.

Crude Oil

Oil prices had slumped to a four-year low as early as last month. However, they were on a rebound after US President Donald Trump began to ramp-up his rhetoric against Venezuela, as well as a rise in tensions across other areas such as China and Taiwan.

As of Friday's closing, Brent Crude was back above the mark of $60 but is on a three-day losing streak, which is most likely to be snapped when trading begins on Monday morning.

Venezuela has the largest proven crude oil reserves, and Trump has made it clear that the US will be involved in fixing the broken energy infrastructure of the country and will also be running the administration of the country for the time being.

Even as Venezuela has large crude oil reserves, its supply is limited due to the multiple sanctions imposed on the country. The IEA has also warned of a significant supply glut in 2026, even if the OPEC+ decides to curb production in the new year.

Gold and Silver

A rise in geopolitical tensions always leads to a flight of capital out from risk assets into other safe havens, such as Gold.

Gold prices, which already had their best year since 1979 in 2025, with a rise of nearly 70%, will be back in focus after the US attacks over the weekend.

According to reports, Venezuela is supposed to have the largest gold reserves among South American countries at 161 Metric Tonnes, which at the current price, could be worth nearly $22 billion.

Silver, although not directly perceived to be a haven asset as compared to Gold, may also see a reaction courtesy the volatile price action it has experienced all through last week. The metal continues to see significant price moves after a 160-odd percent surge in 2025, which was also the best year since 1979 due to speculative inflows, industrial demand, and other factors.

US Dollar

The US Dollar, generally perceived to be the haven set will also be in focus on Monday. 2025 turned out to be the worst year for the greenback since 2017 and therefore a reaction would be closely monitored here.

A stronger US Dollar is generally negative for India's rupee, and also for metals.

However, countries globally have begun to reduce their dependence on the US ever since Donald Trump's tariff regime took effect, with the currency having continuously weakened after having made a record high in excess of 110.

Equities

Wall Street may see a knee-jerk reaction to the US attacks as in this instance, the US is directly involved in a conflict, compared to the Russia-Ukraine war and the Israel-Iran war in 2025.

Indices on Wall Street have entered 2026 on the back of three consecutive years of positive, double-digit returns.

A potentially negative reaction on Wall Street will also have a cascading impact on other global equity markets.