President Donald Trump issued a 60-day waiver of the Jones Act Today, temporarily suspending a law that has governed American maritime shipping for more than a century. The White House confirmed the move, framing it as a necessary step to keep oil, natural gas, fertilizer, and coal moving freely to U.S. ports as the conflict in and around Iran continues to squeeze global energy markets.
Press secretary Karoline Leavitt described the waiver as part of Operation Epic Fury, the name the administration has given to its ongoing military operations, and said it represented another effort to reduce short-term disruptions to the oil market. The Trump administration, she added, remains focused on strengthening domestic supply chains.
The Jones Act, formally known as the Merchant Marine Act of 1920, requires that goods transported between U.S. ports be carried on vessels that are built in the United States, owned by Americans, and crewed by American workers. It was originally passed to rebuild the domestic shipping industry after German submarines devastated the American merchant fleet during World War I. The law was also designed to ensure the United States maintained its own fleet in the event of future conflicts.
What the waiver does and why it matters now
Fewer than 100 vessels currently qualify as Jones Act compliant. By suspending the law for 60 days, the administration frees up a much larger pool of international tankers to move fuel between domestic ports, a logistical change that could help redistribute supply in regions where shortages are developing.
The backdrop is stark. Crude oil was trading around $100 a barrel on Wednesday, up from roughly $70 before the conflict with Iran began. Brent crude, the international benchmark, rose more than 6% Wednesday morning, topping $109 per barrel. The national average for a gallon of gasoline reached $3.84, according to AAA. The Strait of Hormuz, through which roughly 20% of the world’s daily oil supply passes, has been effectively closed by the threat of Iranian strikes on shipping vessels, disrupting not only energy flows but commercial shipments of pharmaceuticals, computer chips, and other goods.
Trump acknowledged the political sensitivity of the decision in recent days, calling the Jones Act a restrictive law while also recognizing it has broad support in Congress among shipping companies, organized labor, and national security advocates. The law’s supporters argue that eliminating foreign competition is worth preserving American jobs and maritime capacity.
Experts say the relief may be limited
Economists and energy analysts are tempering expectations about how much the waiver will actually accomplish. The core problem, according to Daleep Singh, chief global economist at PGIM, is a structural mismatch between what American refineries are built to process and what the country actually produces. Most U.S. refineries are designed to handle heavier Middle Eastern crude, while domestic production is dominated by lighter shale oil. Moving fuel more easily between ports does not resolve that underlying incompatibility.
The Center for American Progress estimated that suspending the Jones Act would reduce East Coast gas prices by roughly three cents per gallon while potentially raising costs on the Gulf Coast. The organization also warned the move would reduce work for American shipbuilders and workers while allowing oil companies to maintain high profit margins.
The Jones Act waiver is one of several steps being taken simultaneously. The Treasury Department recently eased sanctions on Russian oil for one month, and the United States gave India temporary permission to purchase Russian crude. The International Energy Agency pledged to release 400 million barrels from member nations’ stockpiles, the largest emergency release in the organization’s history. Trump announced the U.S. would contribute 172 million barrels from the Strategic Petroleum Reserve over 120 days as part of that effort.
Analysts say those measures offer short-term relief but warn that prices could climb significantly higher if the conflict does not end soon.
