USD/VEF plunges on Venezuela crisis, oil market volatility surges

USD/VEF has collapsed following unprecedented US military intervention in Venezuela, with the bolivar losing over 15% against the dollar in early trading. The capture of President Maduro has created extreme political instability, sending shockwaves through emerging market currencies. Oil prices spiked 4.2% to $78.50/barrel despite PDVSA confirming oil facilities remain operational, as markets price in potential supply disruptions from Venezuela's 700,000 bpd output. The damaged La Guaira port handles 40% of Venezuela's imports, threatening further economic disruption. Latin American currencies weakened broadly, with USD/BRL up 1.8% and USD/MXN gaining 1.2% on contagion fears. Technical indicators show USD/VEF breaking through all resistance levels, with no immediate support in sight. Traders should expect extreme volatility in commodity currencies and emerging markets as the geopolitical crisis unfolds.