World markets reacted with restraint on Monday after the detention of Venezuelan President Nicolas Maduro by the United States, with the attention of investors and governments focused more on the political and geopolitical consequences of the events than on immediate economic shocks, BTA writes.
Following the dramatic developments over the weekend, US President Donald Trump announced that he was placing Venezuela under temporary American rule and warned that he could order new strikes if Caracas does not cooperate in opening its oil industry and fighting drug trafficking. Trump also threatened military action against Colombia and Mexico, further heightening tensions in the region.
According to analysts at Capital Economics, Maduro's removal is unlikely to have significant short-term economic consequences for the global economy, but the political and geopolitical repercussions will be felt for a long time. It is this uncertainty that explains why markets have generally remained calm, despite the unprecedented nature of the US operation.
Oil prices fluctuated in a narrow range, with OPEC+'s decision to keep production unchanged balanced by concerns about possible supply disruptions from Venezuela - one of the key oil countries in Latin America. At the same time, heightened geopolitical risks have led to increased interest in the so-called "safe haven" assets such as gold.
The US military action also heightened concerns about broader instability, which was reflected in higher interest in the defense sector and safe-haven government bonds. Against this backdrop, the dollar remained stable, while investors turned their attention to a series of important economic data due in the US this week.
In Asia, Bank of Japan Governor Kazuo Ueda said the central bank would continue to raise interest rates if economic and price trends develop as expected, stressing that global uncertainty remains a key factor for monetary policy.
Overall, the reaction of global markets suggests that the economic effects of the events in Venezuela remain secondary to broader questions about the international order, the role of the US and the risk of new outbreaks of geopolitical tension.