The Economic Times

What is the Jones Act and why is the Trump administration considering a shipping waiver now could it stabilize U.S. fuel supply and oil prices?

What is the Jones Act and why is the Trump administration considering a shipping waiver now: Oil surged above $100 per barrel this week. Markets reacted fast. The IranIsrael tensions now threaten nearly 20% of global crude supply moving through the Strait of Hormuz. This route carries about 20 million barrels of oil per day. Any disruption shakes the global oil market. The Trump administration is preparing a possible Jones Act waiver. The Jones Act blocks foreign ships from carrying fuel between U.S. ports. A waiver would allow more tankers. More ships mean faster fuel deliveries. It also lowers shipping costs. That could help stabilize U.S. gasoline prices and protect the domestic fuel supply. The International Energy Agency has already released 400 million barrels from emergency oil reserves. The United States alone is contributing 172 million barrels to calm global oil prices.