White House Extends Jones Act Waiver to Ease Oil Supply Tensions

Gate News message, April 24 — The White House will extend its waiver of the Jones Act, a century-old maritime law, to lower transportation costs for oil, natural gas, and other commodities within the U.S. and ease supply pressures. President Trump previously announced a temporary waiver on March 18 in response to energy price spikes triggered by tensions with Iran, authorizing foreign-flagged vessels to transport a range of commodities between U.S. ports for 60 days.

The Jones Act requires cargo transported between U.S. ports to be carried by vessels that are U.S.-flagged, U.S.-built, and U.S.-owned. The waiver exempts certain goods from these requirements, allowing foreign vessels to temporarily transport multiple products including coal, crude oil, refined petroleum products, natural gas, natural gas liquids, fertilizers, petroleum-derived products, and other energy derivatives.

Oil prices fell more than 2% during the day following the announcement, with WTI crude trading at $97.24 per barrel and Brent crude at $99.10 per barrel. On the prediction market Polymarket, the probability of the Strait of Hormuz remaining open through the end of April dropped to just 3%, while the likelihood of transit resuming by end of May fell to 35%, both declining from previous estimates.