Wall Street rode a wave of energy-sector gains on Monday, with oil stocks leading a broad rally that pushed the Dow Jones Industrial Average to fresh all-time highs, as investors digested the implications of the U.S. military raid that effectively placed Venezuela’s massive crude reserves under American influence.
Major energy giants saw sharp increases: ExxonMobil climbed more than 5%, Chevron rose 4.8%, and ConocoPhillips gained nearly 6% in heavy trading. The S&P 500 Energy sector index jumped over 4%, its best single-day performance in months, while West Texas Intermediate crude futures briefly topped $85 per barrel before settling higher.
Analysts attributed the surge to optimism—and uncertainty—surrounding Venezuela’s oil infrastructure, home to the world’s largest proven reserves of over 300 billion barrels. President Donald Trump’s weekend declaration that the U.S. would temporarily “run” the country to secure those assets sent traders scrambling to position for potential increased production and stabilized exports after years of sanctions and mismanagement under Nicolás Maduro.
“This is a game-changer for global supply dynamics,” said Rebecca Carter, senior energy analyst at Goldman Sachs. “If the U.S. can quickly restore output from PDVSA fields, it could add hundreds of thousands of barrels per day to the market—easing tight supplies and giving Washington leverage over OPEC+.”
The broader market showed more caution. While the Dow closed at a record, the S&P 500 and Nasdaq finished mixed as investors weighed geopolitical risks against the energy windfall. Tech shares dipped amid concerns that escalating international tensions could disrupt supply chains, and safe-haven assets like gold and Treasury bonds saw modest inflows.
A Reuters/Ipsos poll released alongside the market open highlighted the domestic divide fueling volatility: only about one-third of Americans approve of the Venezuela intervention, with stark partisan splits—roughly 65% of Republicans in favor versus low support from Democrats.
Treasury Secretary nominee Scott Bessent told reporters the administration is “monitoring markets closely” but sees no immediate threat of runaway inflation from higher oil prices. Still, some economists warn that prolonged instability or retaliation from OPEC nations could push gasoline prices above $4 per gallon nationwide in the coming weeks.
Trading volume was elevated across energy ETFs and options, with implied volatility spiking—a sign that investors are bracing for continued turbulence as the situation in Caracas evolves under interim leader Delcy Rodríguez and ongoing U.S. oversight.
As global condemnation grows and UN debates intensify, financial markets remain on edge, balancing the promise of unlocked Venezuelan supply against the specter of wider conflict. Analysts expect volatility to persist until clearer signals emerge on production timelines and diplomatic fallout.
