Wall Street cheers the prospect of conflict in Venezuela and Greenland

Core Viewpoint - The price of oil fell nearly 2% following the U.S. invasion of Venezuela and the capture of Nicolás Maduro, with traders believing this would not significantly impact oil prices in the short term [1] Group 1: Oil Market Dynamics - U.S. oil company stocks experienced significant increases, with Chevron up 7.82%, Halliburton up 8.45%, ConocoPhillips up 7.54%, and ExxonMobil up 3.95% in premarket trading [1] - Despite Venezuela's vast oil reserves, which account for about 17% of the world's total, its oil production has drastically declined by 75% from 2013 to 2020, now supplying less than 1% of daily global oil [3] - To fully exploit Venezuelan oil, U.S. companies would require strong guarantees against renationalization, the ability to commercialize discoveries, and freedom to explore the Orinoco oil belt, necessitating billions in investment and years of development [4] Group 2: Market Reactions and Trends - The overall market sentiment was positive, with S&P 500 futures up 0.29%, and significant gains in Asian and European markets, including a 2.97% rise in Japan's Nikkei 225 and a 3.43% increase in South Korea's KOSPI [5] - Following renewed threats from President Trump regarding Greenland, defense stocks saw a global uptick, with Rheinmetall up 7.4%, Saab AB up 5.75%, and Mitsubishi Heavy Industries up 8.39% [6] - The private sector is actively preparing for Venezuelan oil projects, with a former Chevron executive raising a $2 billion fund and plans for visits to Venezuela by industry leaders [7] Group 3: Currency and Investment Implications - The U.S. dollar experienced a modest increase, up 0.32% on the ICE U.S. Dollar Index, as the market reacted to the events in Venezuela, leading to a flight to quality assets like gold and the Swiss franc [8]