The Trump administration issued a 90-day extension of a Jones Act waiver on Friday. This policy permits foreign-flagged vessels to transport crude oil, refined petroleum products, and natural gas between U.S. ports.
The move responds to the ongoing closure of the Strait of Hormuz. This conflict with Iran disrupted global supplies and caused energy prices to spike.
Brent crude futures fell from over $107 a barrel to below $94 after the news. The administration intends to increase domestic fuel supplies and stabilize the market.