Amid the rising oil prices as the Iran conflict continues to escalate, the Trump administration is considering the idea of suspending a key maritime law that requires American ships be used to transport between US ports.
“In the interest of national defense, the White House is considering waiving the Jones Act for a limited period of time to ensure vital energy products and agricultural necessities are flowing freely to US ports,” White House Press Secretary Karoline Leavitt said in a statement, as quoted by Bloomberg, but clarifying that, “This action has not been finalised.”
The proposal comes as Donald Trump weighs several measures to address the sharp surge in crude oil and gasoline prices following the ongoing conflict with Iran.
In the latest on oil prices, crude jumped sharply on Thursday after Iran’s Supreme Leader Mojtaba Khamenei pledged “revenge” following strikes by the United States and Israel, while the Islamic Revolutionary Guard Corps (IRGC) warned that the strategic Strait of Hormuz would remain closed.
At around 1450 GMT, international benchmark Brent crude rose 9.46 per cent to $100.68 per barrel, after briefly crossing the $100 level earlier in the trading session.
On Wednesday, the administration said it would release 172 million barrels of crude oil from the Strategic Petroleum Reserve to help ease supply pressures. The move is part of a broader coordinated effort in which multiple countries plan to release around 400 million barrels of oil from their reserves under International Energy Agency (IEA).
