The White House is expected to extend the Jones Act waiver for up to 90 days as early as Friday to help blunt fuel price pressures tied to the Iran conflict, according to two sources familiar with the decision. This move would temporarily ease requirements that goods transported between U.S. ports be carried on American-built and American-crewed vessels.
The extension is under consideration by the White House official, but no comment was made on the length and timing of any announcement. A foreign-flagged tanker delivered a load of crude oil from Texas to a U.S. refinery on Thursday under the temporary waiver.
A Malta-flagged HTM Warrior loaded light, sweet Bakken crude from refiner Phillips 66's terminal in Beaumont, Texas, in early April and discharged the cargo at Monroe Energy's Trainer refinery in Pennsylvania last week, Kpler and LSEG ship tracking data showed.
The Jones Act waiver has been extended previously by President Trump, who waived limitations for 60 days starting March 17. This move was aimed at helping tame the surge in fuel prices caused by the Iran war by increasing shipments from the U.S. Gulf Coast to other coastal markets in the country.
The extension of the Jones Act waiver could provide relief for the energy sector, which has been affected by the recent tensions in the Strait of Hormuz and the resulting increase in fuel prices.
However, the long-term impact of this move on the Jones Act remains uncertain. The law has been a contentious issue among lawmakers and industry stakeholders.
The U.S. government's decision to extend the Jones Act waiver is part of its efforts to contain energy market disruptions caused by the Iran conflict and tensions in the Strait of Hormuz.
This move could also have implications for the global oil market, as it would allow foreign-flagged ships to transport fuel more freely between U.S. ports.
The extension of the Jones Act waiver is a response to the growing concerns about fuel price volatility and its impact on the economy.
The extension could provide temporary relief for the energy sector, but its long-term impact on the Jones Act remains uncertain.
