- White House Press Secretary Karoline Leavitt stated that the waiver is aimed at mitigating short-term disruptions to the oil market amid the ongoing war in Iran.
- She added that the waiver will allow commodities like oil, natural gas, fertilizer, and coal to flow freely to U.S. ports for 60 days.
- The Merchant Marine Act of 1920, commonly called the Jones Act, is a U.S. federal law that regulates maritime commerce within the United States.
The Trump administration on Wednesday issued a temporary 60-day waiver for the Jones Act as crude oil prices continue to rise amid the Iran war.
The Jones Act waiver has been issued to lower the cost of transporting oil, gas, and other commodities.
“President Trump’s decision to issue a 60-day Jones Act waiver is just another step to mitigate the short-term disruptions to the oil market as the U.S. military continues meeting the objectives of Operation Epic Fury,” White House Press Secretary Karoline Leavitt stated in a post on X.
She added that the waiver will allow commodities like oil, natural gas, fertilizer, and coal to flow freely to U.S. ports for 60 days.
What Is The Jones Act?
The Merchant Marine Act of 1920, commonly called the Jones Act, is a U.S. federal law that regulates maritime commerce within the United States. It is named after its sponsor, Senator Wesley Jones.
According to Section 27 of the Jones Act, goods transported between two ports in the country must be carried on ships that are built in the United States, owned by U.S. citizens or U.S. companies, registered under the U.S. flag, and crewed primarily by U.S. citizens or permanent residents.
Waiving the Jones Act would allow foreign ships to carry fuel between U.S. ports, potentially increasing delivery speeds while lowering costs.
This comes at a time when crude oil prices have continued to gain after crossing the $100-per-barrel mark.
U.S. West Texas Intermediate (WTI) crude futures maturing in May gained nearly 2% per barrel to hover around $97 a barrel. Brent crude futures expiring in May surged nearly 5% to $109 per barrel, gaining nearly 19% over the past week.
The United States Oil Fund ETF (USO) gained nearly 2%, while the ProShares Ultra Bloomberg Crude Oil ETF (UCO) was up about 4% at the time of writing.
Trump Voices Frustration With Allies On Strait Of Hormuz
President Donald Trump voiced his frustration with U.S. allies over their reluctance to help with the reopening of the Strait of Hormuz amid the ongoing Iran war.
President Donald Trump on Wednesday said he wonders what would happen if the U.S. let the countries using the Strait of Hormuz be responsible for it.
“I wonder what would happen if we ‘finished off’ what’s left of the Iranian Terror State, and let the Countries that use it, we don’t, be responsible for the so called ‘Strait?’ That would get some of our non-responsive ‘Allies’ in gear, and fast!!!,” he said in a post on Truth Social.
This came a day after the president stated in another post on Truth Social that the U.S. does not need allies to reopen the Strait of Hormuz.
“Speaking as President of the United States of America, by far the Most Powerful Country Anywhere in the World, WE DO NOT NEED THE HELP OF ANYONE!” he said.
Meanwhile, U.S. equities declined in Wednesday’s opening trade. At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was down 0.62%; the Invesco QQQ Trust ETF (QQQ) fell 0.54%; and the SPDR Dow Jones Industrial Average ETF Trust (DIA) declined 1.01%. Retail sentiment on Stocktwits regarding the S&P 500 ETF was in the ‘extremely bearish’ territory.
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