WASHINGTON — President Trump issued an order Wednesday briefly lifting a 106-year-old law in his latest attempt to tamp down rising fuel prices caused by Iran’s closure of the Strait of Hormuz.
The Jones Act of 1920 bars foreign ships from carrying cargo, including oil, between American ports.
“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 US military continues meeting the objectives of Operation Epic Fury,” said White House press secretary Karoline Leavitt.
The White House is hopeful the move will mitigate disruptions caused by the War in Iran. Yuri Gripas / Pool via CNP / SplashNews.com“This action will allow vital resources like oil, natural gas, fertilizer, and coal to flow freely to U.S. ports for sixty days, and the Administration remains committed to continuing to strengthen our critical supply chains.”
Trump’s action, first reported by Bloomberg News, is the latest attempt by the administration to mitigate soaring fuel prices.
On March 11, the president ordered the release of 172 million barrels of oil from the US Strategic Petroleum Reserve — a roughly nine-day domestic supply — as other nations released a further 238 million barrels.
Iran’s closure of the crucial waterway since the US-Israeli war began Feb. 28 has all but stopped the transit of oil, as well as natural gas and helium, which is important for semiconductor manufacturing.
Lower prices could be on the way after Trump waived the act to push down fuel prices. Getty ImagesAbout a fifth of global oil shipments flow through the strait.
Brent crude prices neared $110 per barrel moments after Trump’s announcement Wednesday morning — up from $69 one month ago.
The average national price of gasoline is $3.84 per gallon, up from $2.92 one month ago, according to AAA data.
Energy Secretary Chris Wright said last week that US military escorts for oil tankers through the crucial Strait of Hormuz “can’t happen now” but are “quite likely” to be in place by April.
The US military dropped 5,000-pound bunker-buster bombs on underground Iranian missile sites near the strait on Tuesday in an attempt to wrest control of the passage.
The Pentagon has ordered the deployment of a Marine Corps expeditionary group, believed to consist of at least 2,500 service members, with its expected arrival around the end of the month.
