President Trump issues 60-day Jones Act waiver to curb oil prices amid Iran war

President Donald Trump has issued a 60-day waiver of the Jones Act, a century-old maritime law, in an effort to curb rising oil and gas prices exacerbated by the ongoing war between the U.S., Israel, and Iran.

“The law, introduced in 1920, aims to reduce the costs of transporting oil, gas and other raw materials within the United States”

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The announcement came from White House Press Secretary Karoline Leavitt, who framed the decision as part of the administration's response to mitigate disruptions in the oil market during Operation Epic Fury.

Associated Press

This temporary suspension of domestic shipping requirements represents a significant policy shift aimed at addressing economic pressures facing American consumers and businesses as global energy markets remain volatile due to Middle Eastern conflicts.

The Jones Act, formally known as the Merchant Marine Act of 1920, has long regulated domestic maritime trade by requiring 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 these restrictions, allowing foreign-flagged ships to carry cargo between domestic ports.

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This law was originally enacted after World War I to strengthen the U.S. shipping industry following losses from German submarine attacks, reflecting its historical importance to national security and maintaining a strong domestic shipping fleet.

Critics have long argued that the law limits competition and raises transportation costs, particularly for fuel and essential goods.

The waiver comes as the conflict with Iran has effectively shut down tanker traffic through the critical Strait of Hormuz, a major global oil shipping chokepoint that normally handles about 20 million barrels of crude oil daily.

This disruption has caused major Middle Eastern oil producers to cut output, sending crude oil prices soaring to around $100-109 per barrel, up from roughly $70 before the war began.

American drivers are experiencing significant pain at the pump, with the national average for regular gasoline climbing to about $3.63-3.84 per gallon, representing a jump of 69-86 cents in just one month according to AAA data.

These dramatic price increases have created economic pressures that the administration is attempting to address through multiple policy interventions.

The Jones Act waiver is part of a broader push by the Trump administration to combat the energy price shock, with multiple coordinated efforts underway.

The Treasury Department announced a one-month license to waive sanctions on Russian oil, building on previous moves that gave India temporary permission to purchase Russian oil.

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Separately, President Trump confirmed 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.

However, the American Maritime Partnership expressed deep concern about the 60-day waiver potentially being abused and unnecessarily displacing American workers and companies.

Analysts warn that all these measures offer only short-term relief to the underlying market disruptions.

International perspectives on the Jones Act waiver highlight the global nature of the energy crisis, with Asian sources particularly noting the law's significance in the context of Middle Eastern turmoil.

The Times of India emphasizes that the decision allows foreign-flagged ships to transport fuel and other essential commodities between US ports, representing a major shift from long-standing domestic shipping rules amid global oil market volatility.

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Asian media outlets have framed the waiver as specifically addressing economic impacts of supply disruptions triggered by ongoing conflicts in the Middle East, reflecting how different regions perceive the same economic challenges.

Meanwhile, Western alternative sources have focused on the strategic implications, noting that the administration has also announced plans to provide insurance for ships in the strait, suggesting the U.S. Navy could escort tankers as part of its broader response to the regional instability.