As the conflict in Iran continues to drive volatility across global energy markets, federal and international policymakers have moved on several fronts to stabilize supply and ease price pressures. The following is a brief summary of actions taken to date.

• Global Oil Reserve Release — More than 30 nations have agreed to release a combined 400 million barrels from strategic reserves in a coordinated IEA effort, with the United States contributing 47 percent.

• Temporary Sanctions Relief for Russian Oil — The Trump administration has granted a 30-day waiver for the purchase, delivery, and sale of Russian-origin crude oil and petroleum products. However, it only applies to oil that was already loaded on vessels on or before March 12 of this year.

• Naval Deployment to the Strait of Hormuz — President Trump has called on allied nations to send naval assets to help reopen the Strait of Hormuz, through which roughly 25 percent of the world's seaborne oil supply normally passes. As of yesterday, Japan, Australia, and New Zealand had not agreed to participate, and the U.S. Navy has also yet to commit to escorting vessels through the Strait.

Additional measures are under discussion should market conditions worsen. NEFI is actively monitoring all developments:

• Jones Act Waiver — The administration is weighing a 30-day waiver of the Jones Act, which requires that all goods shipped between U.S. ports be carried on vessels that are built, owned, flagged, and predominantly crewed by Americans. Such a waiver would ease restrictions on the domestic shipment of petroleum products and improve supply flexibility along the U.S. coast.

• Export Restrictions on U.S. Crude Oil and Refined Products — Export restrictions on U.S. crude oil and refined products have been floated as a potential policy tool, though the American Petroleum Institute is vigorously opposing any such move, arguing it would backfire by driving up gasoline prices for American consumers and further destabilize the global energy market.

• Federal Excise Tax Holiday on Motor Fuels — Senator Mark Kelly (D-AZ) and Representative Chris Pappas (D-NH) have introduced legislation that would temporarily suspend the federal motor fuels excise tax, particularly if the conflict extends into the summer driving season. The measure could also emerge as part of a war supplemental reconciliation package currently under discussion in Congress.

These policies will be reviewed in today’s Government Affairs Update Webinar at 10:30am. Register now.

NEFI will continue to track all developments and their implications for our members and the liquid fuels industry. For questions or more information, contact NEFI President and CEO Jim Collura at jim.collura@nefi.com.