{"id":59703,"date":"2026-03-12T11:38:24","date_gmt":"2026-03-12T15:38:24","guid":{"rendered":"https:\/\/stockmarketwatch.com\/stock-market-news\/global-energy-crisis-deepens-us-crude-hits-96-as-white-house-weighs-jones-act-waiver-amid-strait-of-hormuz-closure\/59703\/"},"modified":"2026-03-12T11:38:24","modified_gmt":"2026-03-12T15:38:24","slug":"global-energy-crisis-deepens-us-crude-hits-96-as-white-house-weighs-jones-act-waiver-amid-strait-of-hormuz-closure","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-energy-crisis-deepens-us-crude-hits-96-as-white-house-weighs-jones-act-waiver-amid-strait-of-hormuz-closure\/59703\/","title":{"rendered":"Global Energy Crisis Deepens: US Crude Hits $96 as White House Weighs Jones Act Waiver Amid Strait of Hormuz Closure"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>US Crude (WTI) prices surged 10% to nearly $96 per barrel<\/strong> as the closure of the <strong>Strait of Hormuz<\/strong> triggered a massive supply shock in global energy markets.<\/li>\n<li><strong>The White House is considering a temporary waiver of the Jones Act<\/strong> to facilitate domestic fuel transport and tame soaring prices, though Press Secretary Karoline Leavitt noted the action has not yet been finalized.<\/li>\n<li><strong>JPMorgan (<a href=\"\/stock\/JPM\">JPM<\/a>) has advised investors to &quot;short&quot; the stock market<\/strong> until the <strong>Strait of Hormuz<\/strong> reopens, citing the severe economic risk posed by the maritime blockade.<\/li>\n<li><strong>Federal Reserve rate cut expectations for 2026 have evaporated<\/strong> as the <strong>Atlanta Fed&#39;s GDPNow<\/strong> model raised Q1 growth estimates to <strong>2.74%<\/strong>, signaling persistent economic heat despite inflationary pressures.<\/li>\n<li><strong>Russia is generating an additional $150 million per day<\/strong> in revenue due to the price spike, further complicating the geopolitical landscape and funding ongoing military efforts.<\/li>\n<\/ul>\n<h2>Energy Markets in Turmoil as Supply Routes Close<\/h2>\n<p>Global energy markets are reeling as <strong>US Crude (WTI)<\/strong> jumped 10% to hit <strong>$96 per barrel<\/strong> following the continued closure of the <strong>Strait of Hormuz<\/strong>. The blockade has prompted <strong>Norway\u2019s Maritime Authority<\/strong> to ban all Norwegian-flagged vessels from entering the region until further notice. <em>Analysts warn that the prolonged closure of this critical chokepoint could lead to a sustained global energy deficit.<\/em><\/p>\n<p>In South America, Brazilian President <strong>Lula da Silva<\/strong> stated that oil prices are &quot;getting out of control,&quot; warning that the current trajectory will inevitably lead to higher fuel costs worldwide. Conversely, Miguel Galuccio, CEO of <strong>Vista Energy (<a href=\"\/stock\/VIST\">VIST<\/a>)<\/strong>, noted that higher prices could drive increased capital expenditure in <strong>Argentina\u2019s shale regions<\/strong>, potentially positioning the country as a key player in global energy security.<\/p>\n<h2>White House and Regulatory Responses<\/h2>\n<p>In a bid to mitigate domestic price spikes, the <strong><a href=\"https:\/\/thestockmarketwatch.com\/live\/trump-stock-market\" data-internallinksmanager029f6b8e52c=\"8\" title=\"Trump\">Trump<\/a> Administration<\/strong> is weighing a suspension of the <strong>Jones Act<\/strong>. White House Press Secretary <strong>Karoline Leavitt<\/strong> confirmed that while the waiver is under active consideration to ease logistics, the administration has not yet finalized the move. <em>The Jones Act requires goods shipped between U.S. ports to be carried on ships built, owned, and operated by United States citizens.<\/em><\/p>\n<p>On the regulatory front, <strong>Federal Reserve Governor Michelle Bowman<\/strong> announced that the Fed Board will vote on the <strong>Basel III<\/strong> bank capital proposal next week. Speaking at the <strong>Cato Institute<\/strong>, Bowman indicated a 90-day comment period will follow the vote. She expressed hope that the new rules, which have faced significant industry pushback, will be implemented within a &quot;relatively short timeframe.&quot;<\/p>\n<h2>Economic Outlook and Shipping Disruptions<\/h2>\n<p>The <strong>Atlanta Fed<\/strong> raised its <strong>GDPNow<\/strong> forecast for the first quarter of 2026 to <strong>2.74%<\/strong>, up from a previous estimate of <strong>2.21%<\/strong>. This robust growth data, combined with energy-driven inflation fears, has led traders to completely price out a <strong>Federal Reserve<\/strong> rate cut for the remainder of 2026. <em>The shift in sentiment reflects a market bracing for &quot;higher-for-longer&quot; interest rates as the energy crisis complicates the central bank&#39;s mandate.<\/em><\/p>\n<p>Shipping giant <strong>MSC<\/strong> announced it will implement an <strong>Emergency Fuel Surcharge (EFS)<\/strong> of <strong>$118 per TEU<\/strong> for routes involving South Africa, Namibia, and East Africa starting March 16. This move follows <strong>Fitch Ratings&#39;<\/strong> decision to raise its price assumptions for metals and mining, citing broader inflationary pressures. Meanwhile, geopolitical tensions remain high as the <strong>IDF<\/strong> launched new strikes in Beirut and the <strong>U.S.<\/strong> imposed fresh sanctions on <strong>North Korea<\/strong> for using remote workers to fund weapons programs.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways US Crude (WTI) prices surged 10% to nearly $96 per barrel as the closure of the Strait of 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