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Trump set to authorize strikes inside Venezuela on military targets

The Miami Herald reports that the US is poised to strike military targets in Venezuela in escalation against Maduro regime.This isn’t a hit on narcotics operations but on military installations. This is tantamount to an undeclared war, though the US is saying that drug trafficker use the installations.Sources told the Herald that the targets — which could be struck by air in a matter of days or even hours — also aim to decapitate the cartel’s hierarchy. U.S. officials believe the cartel exports around 500 tons of cocaine yearly, split between Europe and the United States.Oil is climbing on the headlines but Venezuela is no longer a large exporter of oil, with exports around 700-900kbpd.
This article was written by Adam Button at investinglive.com.

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💡 DMK Insight

The potential US military action in Venezuela could significantly impact global markets, especially oil and commodities. Traders should be aware that military escalations often lead to volatility in energy prices, particularly crude oil, which has already been sensitive to geopolitical tensions. If the US strikes military targets, expect a spike in oil prices as supply concerns mount, especially if Venezuela’s production is disrupted. Additionally, this situation could ripple through related markets, including currencies tied to oil exports and emerging market assets. Keep an eye on the $80 per barrel level for Brent crude; a breach could trigger further buying. On the flip side, if the situation de-escalates or if the US fails to act decisively, we might see a quick pullback in oil prices, presenting a potential buying opportunity for traders looking to capitalize on short-term fluctuations. Watch for news updates and market reactions over the coming days, as sentiment can shift rapidly in response to developments.

📮 Takeaway

Monitor Brent crude around the $80 level; any military action could push prices higher, while de-escalation might offer buying opportunities.

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