United States (US) President waives Merchant Marine Act of 1920 for 60 days

Key facts

• United States (US) President Donald Trump has issued a 60-day waiver of the Merchant Marine Act of 1920, commonly known as the Jones Act, to ease domestic shipping costs.
• The waiver allows foreign-flagged vessels to transport essential commodities including oil, natural gas, fertiliser, and coal between US ports.
• The Merchant Marine Act of 1920 requires that ships transporting goods between US ports must be built in the US, owned by US citizens, and crewed primarily by Americans.
• The International Energy Agency (IEA) has pledged to release 400 million barrels of oil from emergency reserves, with the US contributing 172 million barrels from its Strategic Petroleum Reserve.
• The US Treasury Department has eased sanctions on the state oil firm of Venezuela and temporarily allowed Russian oil to re-enter global markets to boost supply.
• Global benchmark Brent crude reached approximately $109 per barrel and US crude climbed to $98 per barrel following disruptions in the Strait of Hormuz.
• The US national average for regular gasoline reached $3.84 per gallon according to the American Automobile Association (AAA), marking a 25 percent increase over pre-war levels.