• In today’s CEO Daily: Fortune energy editor Jordan Blum dissects the “Donroe” doctrine.

• The big story: Allies struggle to respond to Trump’s aggression.

• The markets: Edging lower globally.

• Plus: All the news and watercooler chat from Fortune.

Good morning. In the whirlwind since the U.S. attacked Venezuela and shockingly arrested or “kidnapped” (“It’s not a bad term,” the president said) leader Nicolás Maduro, Donald Trump emphasized the need to control Venezuela’s oil—and then threatened action against Colombia, Cuba, Mexico, and Greenland. The U.S. State Department posted, “This is our hemisphere.” And Trump aide Stephen Miller said the U.S. could next seize Greenland, arguing we live in a “real world” governed by strength, force, and power.

Here’s what leaders need to know about the “Trump Corollary” to the Monroe Doctrine—which Trump renamed the “Donroe” doctrine—to dominate the Western Hemisphere and exert influence over its oil, gas, and critical minerals for national security purposes.

Welcome to the age of ‘petro diplomacy’

Venezuela was clearly a warning shot to the hemisphere and the world, says Dan Pickering, founder of the Pickering Energy Partners consulting and research firm. Why now? The U.S. leads the world in oil and natural gas production, but its industries are maturing, meanwhile the U.S. needs help with critical minerals supply chains dominated by China. “Anything to keep more production close and friendly, I think we want to do,” Pickering told Fortune. That said, “Any next military step [beyond Venezuela] seems a lot harder to justify.”

Some fear Trump’s gambit could embolden our enemies

“These are neocon fantasies. People don’t like their governments, but they really don’t like the U.S. coming in and dictating to them,” observes David Goldwyn, Atlantic Council fellow and State Department special envoy for international energy in the Obama administration. Military action against Venezuela doesn’t deter China and Russia, it emboldens and incentivizes them to act against Taiwan and Ukraine, respectively, he said.

It will be years before U.S. companies see a profit in Venezuela

Although Venezuela is home to the world’s largest oil reserves, its dilapidated industry produces less than 1% of the world’s oil. Trump can say the U.S. oil companies are going back into Venezuela, but doing so is risky and requires tens of billions of dollars of expenses over several years before it could become profitable.—Jordan Blum

Contact CEO Daily via Diane Brady at diane.brady@fortune.com

Top news

U.S. allies struggle to respond to Trump

The U.S.’s European allies are offering tepid responses to Trump’s intervention in Venezuela and his threats against Greenland to avoid provoking the U.S. president. European leaders are backing Denmark’s plea that the U.S. back off its demands for Greenland, but are failing to directly challenge the president despite fears that he’s eroding the Western alliance and dividing the world into spheres of influence based on military might. 

Discord’s IPO

Discord, the San Francisco-based chat app popular with gamers, has filed confidentially for an IPO, Bloomberg reports, adding to a robust queue of VC-backed tech firms expected to go public soon. The company, which has come under scrutiny for its child safety safeguards, was valued at $15 billion in 2021. 

Meet Project Maxwell 

The race to master wearable AI got a new entrant Tuesday when Motorola unveiled its Project Maxwell, which remains in concept for now. The device’s built-in camera “collects full scenario data.” It’s one of many AI-powered wearables that are expected to hit the market this year, with observers eagerly awaiting the offering OpenAI is developing with former Apple designer Jony Ive.

Elon Musk’s ex says Grok produced explicit images of her

Elon Musk’s ex Ashley St. Clair told Fortune that she is considering legal action after Musk’s AI chatbot Grok allegedly created fake sexually explicit images of her that circulated on X, the social media platform owned by Musk. St. Clair said several other women have told her of similar experiences, and she has also seen AI-generated images of minors posted on the site. X did not immediately respond to Fortune’s request for comment, but Musk wrote on the platform that “anyone using Grok to make illegal content will suffer the same consequences as if they upload illegal content.”

Musk’s xAI raises new round

Meanwhile, Musk’s xAI, which developed Grok, has raised $20 billion in funding, which likely pushes its valuation above $230 billion. In a statement, xAI said it was aiming to raise $15 billion but investor enthusiasm boosted the sum. 

Greg Abel’s payday

New Berkshire Hathaway CEO Greg Abel will earn a salary of $25 million, far outpacing the $100,000 his predecessor Warren Buffett earned in annual salary for more than 40 years. 

Hilton’s ICE playbook

Hilton seems to be writing a new crisis management playbook with its swift reaction to conservative criticism that a Minnesota Hampton Inn property, part of its network, denied hotel rooms to ICE agents. Hilton removed the property from its system with remarkable speed as it reaffirmed that its hotels are open to everyone. 

The year of the $100 million home

For the first time in 2025, all of the ten most expensive houses sold in the U.S. went for at least $100 million, with most of the major deals occurring in low-tax states like Florida. The robust luxury home market contrasts the overall U.S. housing market, which recorded a weak year, further proof of the economy splitting into the have and have-nots.

The markets

S&P 500 futures were down 0.16% this morning. The last session closed up 0.62%. STOXX Europe 600 was flat in early trading. The U.K.’s FTSE 100 was down 0.63% in early trading. Japan’s Nikkei 225 was down 1.06%. China’s CSI 300 was down o.29%. The South Korea KOSPI was up 0.57%. India’s NIFTY 50 was down 0.14%. Bitcoin was at $92K.

Around the watercooler

Ray Dalio says AI is in ‘the early stages of a bubble,’ so watch out for 2026 by Tristan Bove

Shark Tank’s ‘Mr. Wonderful’ Kevin O’Leary learned the hard way that movie sets don’t work like boardrooms on Marty Supreme by Marco Quiroz-Gutierrez

‘We took our business community for granted,’ San Francisco’s new mayor admits to city’s failings, but vows not to move fast and break things by Nick Lichtenberg

‘Employers are increasingly turning to degree and GPA’ in hiring: Recruiters retreat from ‘talent is everywhere,’ double down on top colleges by Jake Angelo

Nearly half of Americans didn’t read a single book last year—it’s the one daily habit separating them from billionaires by Preston Fore

CEO Daily is compiled and edited by Joey Abrams, Claire Zillman and Lee Clifford.