FTSE 100 Hits Historic Milestone as Geopolitical Shocks Send Markets Into Overdrive

British equities surged to unprecedented heights during the first full week of trading in 2026, as the FTSE 100 shattered the psychological resistance level of 10,000 points to close at a fresh record high. The rally was fueled by a massive rotation into mining and defense stocks, triggered by seismic geopolitical shifts in South America.

Commodity and Defense Stocks Lead the Charge

The blue-chip index benefited from its heavy weighting in “old economy” sectors, which acted as a magnet for capital as global tensions escalated. Mining giants and aerospace-defense contractors saw significant inflows, offsetting a lukewarm performance in traditional defensive sectors and the index’s structural lack of high-growth technology firms.

The “Caracas Shock”: Maduro in New York
The primary catalyst for the market’s volatility was a high-stakes U.S. special operations mission in Venezuela. On Sunday, January 4, footage surfaced across American media outlets showing Venezuelan President Nicolás Maduro in a New York City detention center.

The elite military extraction, carried out in Caracas before dawn on Saturday, resulted in the capture of Maduro and his wife, both of whom were subsequently transported to U.S. soil.

Market Impact: Analysts anticipate “massive spikes” in crude oil prices during early week trading as markets price in the instability of a major OPEC+ producer and the potential redrawing of the global energy map.

Legal Controversy and Trump’s Vision for Oil

The operation has ignited a firestorm of international debate regarding the legality of the intervention under international law. However, speaking from Washington, President Donald Trump defended the legitimacy of the mission.

Interim Governance: The President stated that the U.S. would oversee a temporary administration in Venezuela to ensure a “safe transition of power.”

Energy Investment: In a move that directly buoyed energy markets, Trump signaled that U.S. oil majors would soon be permitted to return to Venezuela to reinvest in and rehabilitate the nation’s crumbling energy infrastructure.

As the London market prepares for the next session, all eyes remain on the Brent Crude spot price and the potential for the FTSE 100 to consolidate its gains above the historic 10,000-point mark.