Geopolitical Risk Spikes: Trump Floats 'Military Option' for Greenland Amid Venezuela Fallout

WikiFX

| 2026-01-07 14:00

Abstract：Geopolitical uncertainty rises as the Trump administration reportedly considers military options to acquire Greenland, compounding tensions following US strikes on Venezuela.

Global geopolitical risk premiums are being repriced after reports surfaced that the Trump administration is actively discussing scenarios to acquire Greenland, including potential military options. The development comes just days after the US launched military strikes against Venezuela, drawing sharp condemnation at the United Nations.

Arctic Ambitions Panic NATO Allies

A senior US official confirmed to press on Tuesday that President Trump is reviewing multiple avenues to secure Greenland—a Danish autonomous territory—during his current term. Strategies reportedly range from an outright purchase to a “free association” treaty, with military means listed as a contingency.

“The US absolutely needs Greenland,” Trump stated in a recent interview, citing national security priorities.

The rhetoric has triggered a diplomatic firestorm within NATO:

European Response: Leaders from Germany, France, and the UK issued a joint statement affirming that Greenland remains part of the Danish Kingdom and NATO alliance.

Denmark's Stance: Danish Prime Minister Mette Frederiksen warned that any hostile US action against a NATO ally would signify “the end of the NATO system.”

UN Clashes Over Venezuela

Simultaneously, the UN Security Council convened an emergency session to address recent US military strikes in Venezuela. China and Russia led disapproval efforts, labeling the strikes a violation of the UN Charter and an act of “neo-colonialism” aimed at energy resources.

Market Reaction

Safe Havens (USD, Gold): The dual geopolitical shocks—Arctic tensions within NATO and active conflict in South America—are supportive of the US Dollar and Gold as traders hedge against diplomatic instability.

Oil Prices: Tensions in Venezuela (a key OPEC member) alongside potential friction in the energy-rich Arctic are likely to keep a floor under crude oil prices despite broader demand concerns.