Venezuela Crisis: What is the real fear of the markets? Watch these 5 signals – if risk is seen, shares will fall.:Venezuela Crisis: The market is currently unaffected by the Venezuelan crisis, however.

News Topical, Digital Desk : The US action against Venezuela hasn't had any significant impact on the markets. However, it's not that the markets aren't taking this development seriously. So far, the market has not reacted strongly to this development, and the crisis appears to be largely unaffected. However, the market is monitoring several signals that could send the market crashing down.

Following Venezuela , Trump issued statements regarding Mexico, Colombia, and Greenland. Following the Greenland statement, Denmark warned of the collapse of NATO. Furthermore, numerous other conflicts and tensions are currently ongoing worldwide, including the Russia-Ukraine crisis and the China-Taiwan tensions. Markets fear that the simultaneous opening of multiple fronts could lead to a significant negative situation. The rise in defense stocks worldwide indicates that the market is anticipating increased tensions.

Crude oil market structure, not price, has not been significantly affected by the Venezuelan crisis. However, experts are currently concerned about the structure of the crude oil market, not price. Billy Leung, senior investment strategist at Global X ETFs, said in a CNBC report, "The key issue here is whether oil supply tightens. As long as Brent is trading around $60, the market is not overly concerned. However, sharp price fluctuations could raise concerns that the market is anticipating a change in the crude oil structure." According to him, “If the market shifts into 'backwardation,' it would indicate that the issue isn't just a matter of headlines but a real supply problem is developing. While there are no such signs at the moment, the market is keeping a close eye on it. When a crisis truly threatens oil supply, buyers immediately rush to secure barrels, causing near-term prices to rise above future prices. This is called backwardation and is a strong indicator of shortages or panic. The market is also closely monitoring the volatility index. The index is monitored to gauge volatility in markets worldwide. Currently, it is quite low in most markets. This means the market is not anticipating significant fluctuations in the next few days. Leung said, “This suggests that despite elevated geopolitical headline risk, markets are unwilling to pay a high price for safety.” Ed Yardeni, president of Yardeni Research, also said that markets are “waiting to see what the next move will be, so the initial reaction is quite limited.

” Yields and credit spreads are also being monitored by the market. If the market had perceived the events in Venezuela as a risk-augmenting factor, it would have resulted in a decline in bond yields and a rise in inflation expectations. Fortunately, this is not currently occurring. So far, real yields have remained high, partly reflecting the US's heavy debt burden. Inflation expectations are also stable, which does not indicate any major changes in the growth or inflation outlook. Investors are also closely monitoring credit markets, as they often signal stress before equities. According to Leung, "Credit markets often price stress before equities, and sometimes better. High-yield and emerging market sovereign spreads are important indicators for the market." Safe Haven Investments

Gold has been the biggest beneficiary of the Venezuela-related events, posting further gains after a series of record highs in 2025. Similarly, silver prices rose more than 3% to $75.2733 per ounce.

"This reflects an immediate increase in pricing in geopolitical risks," said Steve Bryce, Global Chief Investment Officer at Standard Chartered. The bank expects gold to reach $4,800 per ounce this year. He added that if gold's rise accelerates, it's possible the impact of the latest crisis is being felt. This could lead to some money shifting from equities to safe havens.