White House Extends Jones Act Waiver to August Amid Strait Disruption

The Trump administration has extended a key shipping waiver for 90 days, allowing foreign vessels to move oil and other energy products between U.S. ports through mid-August, according to Rigzone. The waiver, an exemption to the 1920 Jones Act, is designed to counter supply disruptions tied to the war with Iran and provides certainty for domestic energy logistics.

The extension, announced on April 24, adds about three more months to an existing waiver set to expire May 17. It enables foreign-flagged ships to transport coal, crude oil, refined products, natural gas, and fertilizers between domestic ports. A White House spokeswoman said the move provides "certainty and stability" and helps ensure vital energy products reach where they are needed.

For Bakken operators, the continued waiver facilitates more flexible and potentially cost-effective waterborne shipment of crude oil from North Dakota to coastal refineries. The waiver has already been used for crude oil shipments to states including California, Pennsylvania, and Florida, Rigzone reported.

The waiver extension comes as the effective closing of the Strait of Hormuz has pulled an estimated 13 million barrels of crude and refined products from the global market daily. This disruption is shaping industry expectations, according to an updated Dallas Fed Energy Survey.

In the survey update, 99 oil and gas executives were asked when they expect traffic through the Strait of Hormuz to return to normal. Only 20 percent anticipated a return by May, while 39 percent pointed to August, and 26 percent said November, according to the survey data collected from April 15-20. A majority of executives also believe future disruptions to the strait are likely within the next five years.

The ongoing disruption is supporting oil prices and creating market risk. SEB analyst Ole R. Hvalbye warned in a report that there is "a high risk being short energy and betting on any immediate political resolution," Rigzone reported. He noted that the market's previous assumption of a Strait reopening around May 1 "is now slowly falling apart," and each week of delay could add roughly $5 per barrel to the rest-of-year average price for Brent crude.

The Dallas Fed survey update also asked executives about expected long-term increases in shipping costs from the Persian Gulf. The most common response from 70 firms was an increase of "more than $2 but not more than $4" per barrel once the conflict ends, indicating a lasting impact on global oil transportation economics.

One exploration and production executive commented in the survey that "geopolitical events are too chaotic to provide any degree of certainty to commodity pricing or unimpeded transportation." This sentiment underscores the elevated uncertainty facing operators in the Bakken and nationwide as the Iran conflict continues to constrain global supply.