The Trump administration extended a Jones Act waiver for 90 days on Friday. This executive action allows foreign-flagged vessels to transport fuel, including crude oil and natural gas, between U.S. ports. The 1920 maritime law normally forbids foreign ships from operating these domestic routes.
The waiver responds directly to the effective closure of the Strait of Hormuz. This Middle East conflict caused energy prices to soar and created supply bottlenecks. The White House aims to stabilize the U.S. economy by mitigating disruptions to energy markets.
Brent crude oil prices fell to between $94 and $98 per barrel following the announcement. Prices had recently surpassed $107 per barrel before the extension. The policy seeks to lower transportation costs by increasing the number of available tankers. The initial 60-day waiver was first issued in mid-March.