Venezuelan bonds have surged since the Trump administration moved to control a significant portion of the country's oil reserves. The plan, involving over 65 billion barrels of proven reserves, has pushed defaulted government and state oil company bonds to near four-month highs. Sovereign notes due in 2027 hit 54 cents on the dollar, implying a recovery of less than a third of total claims including accrued interest.

Investors are factoring in higher crude production prospects as they await a debt restructuring that could exceed $200 billion. The development marks a significant shift in the country's financial outlook amid ongoing political tensions.