US government: "Measures on oil prices to be announced within two days"…meeting planned with the oil industry

As the Middle East–driven energy crisis deepens, the US government is preparing measures to curb the inflationary impact.

Vice President JD Vance, who visited Michigan today, suggested that decisive steps would be taken soon to address rising oil prices. “The next few weeks will be a tough road, but this is temporary,” he said, adding that the administration “plans to announce a couple of measures to deal with rising oil prices within 24 to 48 hours.” He also said current oil prices are lower than at certain points under the Biden administration, and voiced confidence that prices would fall back to normal levels once military operations end.

Vance and Energy Secretary Chris Wright are set to meet tomorrow (19th) with the American Petroleum Institute (API), the largest US oil trade group.

Immediately after the remarks, the White House announced a first move: a 60-day temporary waiver of the Jones Act. The administration had previously considered a one-month waiver, but as the war is expected to last longer than anticipated, it expanded the waiver period to 60 days.

Enacted in 1920, the Jones Act requires cargo shipped between US ports to be carried only on vessels that are US-flagged and owned and built by Americans. This is one reason prices are higher in places such as Alaska and Hawaii. Because the number of ships that meet these conditions is limited, goods could move to and from regions far from the mainland only by paying high logistics costs.

Despite inflation concerns, the US has strictly maintained the Jones Act to protect its shipbuilding and shipping industries. However, under this waiver, foreign vessels will be allowed over the next two months to transport energy resources—such as oil and natural gas produced in Texas or Louisiana—to other locations.

White House Press Secretary Karoline Leavitt said in a statement that the decision is intended to “ease short-term disruption in the oil market,” and made clear the administration’s determination to prevent potential energy supply disruptions that could arise during US military operations.

The waiver covers a broad range of items, including coal, crude oil and liquefied natural gas (LNG), as well as fertilizers and energy derivatives.

It remains unclear, however, whether the move will translate into tangible relief for consumers. Some analyses suggest the Jones Act waiver’s impact on retail gasoline prices could be minimal—less than 2 cents per gallon—meaning it could end up largely symbolic. US gasoline prices currently average $3.84 per gallon, up 30% from $2.92 a month ago. If the situation drags on, it is also expected to affect the midterm elections.

Washington=Correspondent Lee Sang-eun selee@hankyung.com