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President Donald Trump has issued a 60-day waiver of the Jones Act, a century-old maritime law, in an effort to ease rising fuel prices and keep energy products moving freely to U.S. ports amid ongoing disruptions caused by the war between the U.S., Israel, and Iran.
The Jones Act, formally known as the Merchant Marine Act of 1920, requires that cargo shipped between U.S. ports travel only on vessels that are American-built, American-owned, American-flagged, and crewed primarily by U.S. citizens. The waiver temporarily lifts those restrictions, allowing foreign-flagged ships to carry cargo between domestic ports.
White House press secretary Karoline Leavitt confirmed the administration had been exploring the move, saying it was being considered "in the interest of national defense" to "ensure vital energy products and agricultural necessities are flowing freely to U.S. ports."
The decision comes as the conflict with Iran has effectively shut down tanker traffic through the key Strait of Hormuz, a critical chokepoint for global oil shipments. Major Middle Eastern oil producers have cut output in response, sending crude oil prices soaring to around $100 a barrel, up from roughly $70 before the war began. American drivers are feeling that pain at the pump, with the national average for regular gasoline climbing to about $3.63 a gallon, a jump of 69 cents in just one month, according to AAA.
The Jones Act waiver is just one piece of a broader push by the Trump administration to combat the energy price shock. The Treasury Department announced a one-month license to waive sanctions on Russian oil, building on a move that gave India temporary permission to purchase Russian oil as well. Separately, President Trump confirmed Wednesday (March 18) that the U.S. will release 172 million barrels from its Strategic Petroleum Reserve over 120 days, as part of a broader effort by the International Energy Agency, which pledged to unlock 400 million barrels from member nations' stockpiles, the largest emergency oil release in the organization's history.
Still, analysts warn that all of these measures offer only short-term relief. Refineries buy crude oil in advance, and it takes time for new supply to reach consumers. The U.S. is a net oil exporter, but it remains exposed to global price swings because American refineries on the East and West coasts are largely designed to process heavier imported crude, not the lighter domestic product most U.S. wells produce.