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Sunday, January 4, 2026

'Goldman Sachs sees limited Venezuela oil recovery after U.S. action'

 The possibility that Venezuela could eventually restore some of its oil production following the U.S. removal of the country’s leader may add longer-term downward pressure on global crude prices, according to analysts at Goldman Sachs Group.

In a note published Sunday, analysts said any rebound in Venezuelan output would likely be limited and slow, citing years of underinvestment and deteriorating infrastructure. Significant gains, they added, would require strong incentives to attract large-scale upstream capital.

The assessment comes after the United States carried out a military operation over the weekend that led to the detention of Venezuelan President Nicolás Maduro and a pledge by Washington to oversee a political transition. Venezuela was once a major oil producer, but output has steadily eroded over the past two decades.

Goldman left its 2026 oil price outlook unchanged, forecasting average prices of $56 a barrel for Brent crude and $52 for West Texas Intermediate. Oil futures slipped at the start of the week, with Brent trading near $61 a barrel.

Analysts warned that the prospect of higher Venezuelan supply in the longer term adds to downside risks for prices beyond 2027, particularly when combined with recent production growth in Russia and the United States.

U.S. President Donald Trump said after Maduro’s detention that American oil companies were prepared to invest billions of dollars to rebuild Venezuela’s oil sector. Goldman noted, however, that Venezuela’s current production levels remain far below historical norms.

At its peak in the mid-2000s, Venezuela produced roughly 3 million barrels per day. Output fell to about 930,000 barrels per day in November and may have declined further following recent production shut-ins, the bank said. Storage constraints worsened after the U.S. imposed partial restrictions on tanker traffic ahead of the operation.

https://www.msn.com/en-us/money/markets/goldman-sachs-sees-limited-venezuela-oil-recovery-after-us-action/ar-AA1Tz5xY?ocid=finance-verthp-feeds

First Venezuela, Next Iran?

 Top US officials have been eager to capitalize on the Trump-ordered military raid on Caracas, which saw the Venezuelan capital bombed and its longtime socialist leader Nicolás Maduro captured without major incident and transferred to US soil where's facing federal drug charges related to narco-trafficking and gun-running.

Hawkish pundits are already clamoring for more muscular action targeting Tehran (and other supposed 'rogue' actors) at a moment of ongoing economic protests in Iran pressuring Islamic Republic leaders. Trump is issuing veiled threats to the governments of Cuba, Colombia, and Mexico - but many are asking: is Iran next? Various open source intelligence channels (OSINT) on Sunday have highlighted some unusual American military activity in the UK and Europe, for example...

It's hard to know if this constitutes the usual Pentagon logistical operations in Europe, but it does indeed raise questions regarding Washington's force posture vis-a-vis Iran

One theme of the last several months of Trump's military build-up in the southern Caribbean has been that in sending so many warships to Venezuelan waters, including at least one nuclear-powered submarine and the USS Gerald R. Ford carrier group, is that this level of military asset concentration in Latin America means less deadly or long-range assets in the Middle East (CENTCOM) area of operation.

But could we be witnessing a quick pivot, now with Maduro awaiting trial in New York?

There are various things to consider when it comes to potential White House discussions on the matter. First, it must be recalled that Trump wisely declared mission accomplished when US bombers 'obliterated' (in the US estimation) Iran's three most important nuclear development sites at the tail-end of the June Israel-Iran war, which lasted just 12 days. There was no sustained American bombing campaign against Iran, also as Trump knows that "doing another Iraq" would be hugely unpopular at home.

There's another difficult reality when it comes to US actions targeting Iran, which behind Venezuela also possesses among the world's biggest proven reserves of crude oil. Iran is a country of over 90 million people, has a large military overseen by the elite IRGC, has long been 'military tested' (the 1980's Iran-Iraq war comes to mind), and has one of the world's premier arsenals of mid and long-range ballistic missiles. It even posses hypersonic capabilities (which the Israelis also learned). Because of this, last June Israeli warplanes were careful to operate largely outside Iranian airspace, and even though many anti-air missile sites were allegedly destroyed, this threat remains strong.

Reports of more IRGC missile tests over Iran Sunday night into Monday...

Trump will of course leave people guessing in his 'shoot from the hip' fashion. After all, the operation to topple Maduro was held as a tightly guarded secret even from many top Pentagon officials (in terms of the timing and "need to know" details just before it was launched). Here's what one Conservative, anti-Iran pundit has to say:

First Venezuela, next Iran. These military flights signify a barrel of whoop-ass, not just a can. Likely, these show deployments of the 101st Airborne AND the 1st Battalion, 75th Ranger Regiment.

The US Navy Fleet Tracker is oddly dark as well. We have 11 Aircraft Carriers, look at the 12/29/25 update compared to the 03/17/25 update. We are no longer posturing, we are in OPSEC mode. In Kuwait, the USA maintains roughly 13,500 troops at any given time. These troops serve as a Middle East response force (among other missions).

So why are the 1/75 Rangers and 101st Airborne deployments significant? The 75th Ranger Regiment's primary mission is airfield seizures. The 101st is an Air Assault unit. The USA just moved a huge strategic asset designed to open the gates of hell into whatever country we choose.

And as for keeping people guessing, there was this remark from Trump just days ahead of the operation to kidnap Maduro. "If Iran shots [sic] and violently kills peaceful protesters, which is their custom, the United States of America will come to their rescue. We are locked and loaded and ready to go," Trump posted on Truth Social last Monday.

Would Russia comes to Iran's defense if it is threatened with large-scale military action? Certainly the vehement condemnations would fly from Moscow, but Russia's military is obviously busy doing other things...

Regardless of if the US deescalates ongoing tensions with Tehran, or if Trump chooses to soon escalate, the Ayatollah and Islamic Republic leaders just got a lot more nervous and uncomfortable as they helplessly watch their longtime ally Maduro being hauled before a US federal court on American soil.

For now the most likely scenario is that Trump will be content to see where the now weeklong protests inside Iran go, as they threaten societal stability, and as the US-led sanctions regimen continues to wreak devastation. It is also likely that he would unleash Israel first, and not send US troops for direct action - akin to what happened in the last June bombing raids.

* * *

"It's time"... another Israeli direct threat aimed at Iran:

Venezuela's interim gov't says it supports Maduro

 The acting Venezuelan government stated its support for Venezuelan President Nicolas Maduro, who is set to make his first court appearance in New York City tomorrow after being captured by the United States on Saturday.

"Here, the unity of the revolutionary force is more than guaranteed, and here there is only one president, whose name is Nicolas Maduro Moros," Interior Minister Diosdado Cabello said in an audio recording released by the ruling PSUV party. "Let no one fall for the enemy's provocations," he added.

https://breakingthenews.net/Article/Venezuela's-interim-gov't-says-it-supports-Maduro/65421250

Iran holds missile, air defense exercise

 Iran's Islamic Revolutionary Guard Corps (IRGC) kicked off a missile and air defense exercise on Sunday, Iran International reported, citing state media.

The sound of air defense drills was heard in several cities, including Tehran and Shiraz, the report added.

https://breakingthenews.net/Article/Iran-holds-missile-air-defense-exercise/65421262

Khamenei said to be eyeing Moscow refuge

Iranian Supreme Leader Ayatollah Ali Khamenei arranged a contingency plan to leave Tehran for Moscow, The Times reported.

The newspaper cited an intelligence assessment that outlines preparations for Khamenei to depart with a small group of aides and relatives should unrest deepen. The report pointed to Khamenei's health concerns, his isolation during recent demonstrations and the risk that loyalty within Iran's security forces could weaken.

According to the report, the plan includes assets already placed abroad and relies on the precedent set by former Syrian President Bashar al-Assad. The protests in Iran led United States President Donald Trump to warn that Washington was ready to act in case authorities killed demonstrators.

https://breakingthenews.net/Article/Khamenei-said-to-be-eyeing-Moscow-refuge/65421293

Venezuela deploys armed forces nationwide

 Venezuelan Defense Minister Vladimir Padrino announced on Sunday the deployment of military forces across the country to guarantee "the freedom, independence, and sovereignty" of the country.

"We activate throughout the entire national geographic space and in perfect popular–military–police unity, the Operation Ready Combat Deployment, in order to integrate the elements of National Power in the mission of confronting imperial aggression," Padrino added.

https://breakingthenews.net/Article/Venezuela-deploys-armed-forces-nationwide/65421145

Yemen's Saudi-backed forces recapture Hadhramaut

 Yemen's Saudi-supported, internationally recognized forces announced on Sunday that their government regained complete control of the Hadhramaut province following the withdrawal of UAE-backed Southern Transitional Council (STC) forces.

"We have regained full control of all Hadhramaut territory, expelled STC forces, and begun administering duties and normalizing life," Hadhramaut governor Salem al-Khanbashi told reporters after arriving at Seiyun International Airport.

Tensions rose after the STC marched into the governorates of Hadramout and Mahra last month and took control of an oil-rich region. That pushed out forces affiliated with National Shield Forces, which are aligned with the Saudi-led coalition in fighting the Iran-backed Houthi terror group.

https://breakingthenews.net/Article/Yemen's-Saudi-backed-forces-recapture-Hadhramaut/65421146