Iran Vows Retaliation as Conflict Drags On; Trump "Lifts Ban" on Jones Act for 60 Days to Lower Oil Prices!

Amid the escalating U.S.-Iran conflict and soaring international oil prices, according to CCTV News, U.S. President Donald Trump authorized a 60-day temporary exemption from the Jones Act on Wednesday (the 18th) to reduce transportation costs for commodities like oil and natural gas within the United States.

White House Press Secretary Karine Leavitt stated in a release that the temporary exemption from the Jones Act “will allow important resources such as oil, natural gas, fertilizer, and coal to flow freely to U.S. ports for sixty days.” She also added that the Trump administration “remains committed to strengthening our critical supply chains.”

Under the latest measures, for the next 60 days, ships flying foreign flags will be permitted to transport related energy and other goods between U.S. ports.

Although the U.S.-Iran conflict has entered its third week, it shows no signs of ending soon. According to CCTV News, on the evening of March 18 local time, Iran’s Supreme Leader Ayatollah Ali Khamenei issued a statement mourning the death of Iran’s top national security official, Ali Larijani, and his son, and vowed that “blood debts will be settled soon.”

Meanwhile, Iran’s Islamic Revolutionary Guard Corps issued an emergency warning that five oil and gas facilities in Saudi Arabia, the United Arab Emirates, and Qatar have become legitimate targets for attack, with strikes expected in the coming hours. They urged residents in the affected areas to evacuate, including the oil and gas facilities in Ras Laffan Industrial City, Qatar.

Just hours after the warning was issued, Ras Laffan Industrial City was hit by missile attacks. Iran also claimed to have successfully struck the Saudi joint oil and gas refinery near Riyadh. Additionally, Iran’s Islamic Revolutionary Guard Corps stated that Iran attacked U.S. military bases and Kurdish armed forces in Iraq.

These developments caused international oil prices to continue rising, with benchmark Brent crude futures surpassing $109 per barrel, showing signs of breaking the $110 mark.

Can Trump get his wish?

Analysts suggest that the exemption from the Jones Act is seen by the U.S. government as a measure to ease the pressure of rising energy prices caused by military actions against Iran.

The Jones Act, enacted in 1920, aims to support the U.S. domestic shipbuilding and shipping industries. It requires vessels transporting goods between U.S. ports to be U.S.-built, U.S.-registered, and flying the U.S. flag; most ownership must be held by U.S. citizens, and the vessels must be operated by U.S. crews.

The law seeks to protect domestic maritime interests by prohibiting foreign ships from engaging in domestic shipping routes, but it has been controversial for restricting shipping capacity and increasing transportation costs during emergencies.

According to Daleep Singh, Chief Global Economist at asset management firm PGIM, fewer than 100 ships meet the Jones Act requirements, so the exemption will allow more international tankers to transport fuel between U.S. ports.

However, he also noted that the impact of the temporary exemption may still be limited. This is due to a mismatch: most U.S. refineries are built to process Middle Eastern crude oil, while the U.S. mainly produces lighter shale oil.

“In short: the U.S. can now more easily transport fuel, but it still cannot refine enough domestically produced fuel to be self-sufficient,” he wrote in his latest report.

Later Wednesday, an alliance of nine U.S. maritime labor groups expressed concern over the Jones Act suspension.

In a joint statement, they said that this broad exemption “undermines our national security, weakens military readiness, and leaves key maritime work to foreign operators.” They also believe that this move will not significantly lower gasoline prices.

“There is clear evidence that the main driver of gasoline prices remains global crude oil costs, and multiple analyses show that domestic transportation costs are less than one cent per gallon,” they added.

(Article source: Cailian Press)