Venezuela's IBC Index zooms 16%, hits 52-week high following US attack

Venezuela's IBC Index jumps 16% to a 52-week high after a US attack, as investors bet on sanctions relief, oil revival and political change

The Venezuelan stock market witnessed an extraordinary surge on Monday, January 5, 2026, as the Caracas Stock Exchange (Bolsa de Valores de Caracas) index (IBC) soared by 16.45 per cent. This dramatic rally propelled the index to a new 52-week high, closing at 2,597.68 points, compared to the index’s previous close of 2,230.81. 

The index hit an intraday high of 2,621.77 and an intraday low of 2,230.81.

  The surge comes immediately following a surprise US attack on the South American nation, and the capturing of its President Nicolás Maduro.

 

Why did Venezuela's stock market rise?

Investors reacted with aggressive optimism to "Operation Absolute Resolve," a large-scale US military operation launched in the early hours of January 3. The intervention led to the capture of President Nicolás Maduro and his wife, Cilia Flores, who were subsequently transported to New York to face charges of narco-terrorism and drug trafficking. 

 

The market's positive reaction is largely attributed to expectations of a sweeping economic overhaul as US President Donald Trump has indicated a plan to involve major American energy firms to restore Venezuela’s dilapidated infrastructure. 

Investors are betting that the removal of the Maduro administration will lead to the easing of long-standing international sanctions and a revitalisation of the country's oil sector, which holds the world's largest proven reserves.

  The financial sector led the rally in Caracas, with major banks seeing double-digit gains as market participants focused on economic recovery. 

 

US-Venezuela crisis latest updates

Ousted Venezuelan President Nicolas Maduro and his wife Cilia Flores have pleaded "not guilty" to narcotics charges, in response to US President Donald Trump's shocking capture of them over the weekend. 

Appearing before US District Judge Alvin Hellerstein, in Manhattan federal court, the toppled President said "I am innocent. I am not guilty. I am a decent man. I am still the president of my country."

  The US Department of Justice, meanwhile, has unsealed indictments alleging a decades-long conspiracy to "flood the United States with cocaine." The next hearing is on March 17, as per Reuters.   

Other key developments

• Interim leadership: Vice President Delcy Rodríguez has been sworn in as interim president of Venezuela. While she initially condemned the US action as a "cowardly kidnapping," recent reports suggest a more conciliatory tone as she held her first cabinet meeting to maintain administrative continuity.

 

• Global reaction: The United Nations Security Council convened an emergency meeting on January 5 to discuss the implications of the strike. While some regional allies have expressed concern over the legality of the intervention, market analysts suggest that the prospect of unlocking approximately 900,000 barrels of oil per day is driving the current "risk-on" sentiment in the financial sector. 

• China supports Venezuela: China has expressed "shock and condemnation" in response to the US' military action. Beijing has also urged the US to release the ousted Venezuelan president, asking Washington to resolve the crisis through dialogue.

  • China's investments in Venezuela: Notably, Beijing's support to Maduro comes in the backdrop of significant inroads that the Asian country has made in Latin America over the past two decades. 

As per reports, most state-owned Chinese companies have invested $4.8 billion in Venezuela over the last two decades.

  Beijing has also persuaded several countries, including Panama, Costa Rica, the Dominican Republic and El Salvador, to shift diplomatic recognition from Taiwan to China, according to CNBC.

  • US markets hit record highs: Major US indexes such as the Dow Jones Industrial Average reached record levels on Monday, buoyed by strong performances in energy majors and industrial stocks.

  Dow Jones advanced 1.23 per cent, S&P500 rallied 0.64 per cent, and Nasdaq Composite gained 0.69 per cent.

  Energy shares, including oilfield services and refiners, recorded strong performances as investors positioned for future production and infrastructure activity.