The United States launched a series of military strikes inside Venezuela on January 3, triggering sharp reactions across Latin America, renewed tension between Washington and Caracas, and immediate attention from global energy markets. The attacks, which Venezuelan authorities described as large-scale and coordinated, were followed by an announcement from U.S. President Donald Trump claiming that Venezuelan President Nicolás Maduro had been captured and flown out of the country along with his wife. While U.S. officials have offered limited operational detail, the events have marked one of the most serious escalations between the two countries in decades.
Venezuela’s government responded within hours, accusing the United States of attempting to seize the country’s oil and mineral wealth under the cover of military action. In an official statement, Caracas said the objective of the strikes was to break Venezuela’s political independence by force and gain control over its strategic resources. The government rejected the claims of legitimacy made by Washington and called on supporters to mobilise across the country in opposition to what it described as an imperialist attack. A state of external disturbance was declared, and national defence plans were activated.
President Trump, posting on his social media platform Truth Social, said the United States had successfully carried out a strike against Venezuela and confirmed Maduro’s capture. He said the operation was conducted with U.S. law enforcement support and promised further details at a press conference at his Florida residence. A U.S. official later confirmed to Reuters that American strikes had taken place but declined to provide specifics about targets or agencies involved. The Pentagon and the White House did not immediately respond to further questions.
In Caracas, residents reported explosions, low-flying aircraft, and power disruptions at military installations. Smoke was seen rising from the hangar of a military base in the capital, and another installation reportedly lost electricity. Witnesses described panic in several neighbourhoods as people rushed into the streets in the early hours of the morning. Venezuelan officials said both civilian and military sites were hit across multiple states, though independent confirmation remains limited.
The U.S. government has accused Maduro for years of drug trafficking, corruption, and undermining democracy. Washington has charged him with narco-terrorism and has steadily increased pressure through sanctions, asset seizures, and maritime enforcement. In recent months, U.S. forces have targeted vessels Washington claims were involved in drug smuggling in the Caribbean Sea and eastern Pacific. According to U.S. figures, at least 35 boats have been struck since September, with more than 100 fatalities reported. Caracas has denied the allegations and accused the U.S. of fabricating charges to justify intervention.
Oil has remained central to the confrontation. Venezuela holds the world’s largest proven crude reserves, though production has fallen sharply over the past decade due to sanctions, underinvestment, and operational problems. The U.S. has progressively tightened restrictions on Venezuelan oil exports, including a blockade of certain tankers and the seizure of cargoes. These measures have already reduced Venezuela’s oil shipments in recent months, even before the January strikes.
According to data from S&P Global Commodities at Sea, Venezuela exported about 19 million barrels of oil in December, down from 27.2 million barrels in November and 20.7 million barrels in December of the previous year. U.S. enforcement actions prompted many shipping companies to avoid Venezuelan waters, leaving state oil company PDVSA with growing inventories stored on tankers. Internal documents and monitoring data suggest exports fell to roughly half of November levels following the tanker seizures.
Despite the military action, sources familiar with PDVSA operations told Reuters that oil production and refining facilities were not damaged during the strikes. Oil fields, refineries, and export terminals were reported to be operating normally. One source said the port of La Guaira, near Caracas, suffered heavy damage, though the port is not used for oil exports. Chevron, the largest U.S. oil company still operating in Venezuela under a special licence, did not immediately comment on the situation.
The oil market reaction has been cautious rather than dramatic. Analysts said prices were likely to rise only modestly, reflecting the fact that global supply remains ample and that Venezuelan output has already been constrained. Platts Dated Brent was last assessed at just under $61 a barrel before the strikes. Arne Rasmussen, chief analyst at Global Risk Management, said any initial price increase would probably be limited to one or two dollars and could fade quickly as traders reassess supply conditions.
Rasmussen added that concerns about Venezuelan crude could offer some support to high-sulphur fuel oil markets, as Venezuelan oil is often refined into residual products. However, he noted that a temporary disruption from Venezuela has largely been priced in by the market, particularly during the first quarter when global inventories are relatively high. Other analysts echoed this view, pointing out that Venezuela’s current export volumes are small compared to global output.
In the United States, economists have been monitoring potential knock-on effects on fuel prices. While the U.S. has reduced its imports of Venezuelan oil by nearly 90 percent over the past two decades, certain refined products still depend indirectly on heavy crude supplies. Venezuela’s oil is commonly processed into diesel and jet fuel, raising concerns about possible impacts on trucking and aviation if supplies tighten further.
West Texas Intermediate futures have risen about 4 percent since December following announcements of tanker seizures and sanctions enforcement, while Brent crude has increased by around 3.5 percent over the same period. These gains come despite weak demand indicators and slowing economic growth in several major economies. Gasoline prices in the U.S. remain near a five-year low, with the national average at about $2.82 per gallon, according to AAA.
Energy analysts say low prices reflect a combination of high global production and reduced demand, partly due to electric vehicle adoption, remote work patterns, and slower economic activity. University of Texas energy analyst Michael Webber said gasoline prices remain low because demand has softened while oil supply remains abundant. He added that even major geopolitical shocks may struggle to push prices sharply higher under current conditions.
