U.S. sanctions, intended to pressure the Venezuelan regime, create a legal barrier that prevents creditors and the government from even beginning negotiations on restructuring its defaulted debt. The path to resolution is ironically blocked by the very policy designed to force it.

The most dramatic market reaction to Venezuelan developments was not in oil or equities, but in its own defaulted bonds. Prices soared over 25% based on the increased likelihood of a creditor-friendly political transition, highlighting how political events can be the primary catalyst for returns in distressed sovereign debt.

In a future restructuring, the typical fight between creditors and citizens will likely be preceded by a new top tier of claimants. The U.S. government, seeking to cover its intervention costs, and oil companies, needing payment for past expropriations, will likely get first access to revenues.

While the Trump administration promotes investment in a post-Maduro Venezuela, major oil companies like ExxonMobil are publicly skeptical. Their stance that the country is "uninvestable" due to the absence of rule of law shows that political guarantees are insufficient without fundamental institutional reforms.

The Trump administration is depicted as ignoring Venezuela's legitimately elected opposition leader and instead choosing to work with the former vice president. This suggests a strategy prioritizing controllable stability with a regime figure over supporting a democratically elected but potentially less predictable leader.

The U.S. strategy appears to be maintaining a weakened Chavista regime to ensure stability and access to oil, effectively turning Venezuela into a resource colony without genuine political change for its people.

Venezuela's bonds have rallied significantly as the market prices in a swift, positive political outcome enabling debt restructuring. Analysts, however, are more cautious, warning that the path to a stable, internationally-recognized government could be much longer and more complex than current market sentiment implies.

The US action to remove Maduro was not a traditional regime change. The goal was to eliminate the leader personally while leaving his party and government apparatus largely intact, suggesting a strategic choice to avoid the instability of a full power vacuum.

By leaving the existing Chavista power structure largely intact after removing Maduro, the U.S. is applying a key lesson from Iraq: avoiding a power vacuum and the chaos of de-Ba'athification is paramount for stability.