President Trump waives Jones Act to ease fuel costs amid US-Israel war against Iran.

President Donald Trump has issued a 60-day waiver to the century-old Jones Act, temporarily allowing foreign-flagged vessels to transport cargo between US ports.

“United States President Donald Trump has waived a more than century-old maritime shipping law in an effort to quell rising fuel costs amid the ongoing US and Israeli war against Iran”

Al Jazeera

The Jones Act, formally known as Section 27 of the Merchant Marine Act of 1920, typically requires goods shipped between American ports to be carried on vessels that are US-built, US-flagged and mostly US-owned.

Al Jazeera

The White House announced the waiver through press secretary Karoline Leavitt, who stated it would 'allow vital resources like oil, natural gas, fertilizer, and coal to flow freely to U.S. ports.'

Leavitt described the action as 'just another step to mitigate the short-term disruptions to the oil market as the U.S. military continues meeting the objectives of Operation Epic Fury.'

The move represents a significant departure from the protectionist maritime policy that has been in place since 1920.

The fuel price crisis has intensified dramatically due to the US-Israel war against Iran, which has disrupted critical shipping routes through the Strait of Hormuz.

The Strait of Hormuz typically handles about one-fifth of global oil consumption.

Barrons

Gas prices in the United States have surged by approximately 92 cents per gallon over the past month, reaching an average of $3.842 per gallon on Wednesday.

International benchmark Brent crude has climbed to nearly $110 per barrel, while US crude was trading around $97 per barrel.

Only about 90 ships total, including under two dozen oil tankers, have crossed the Strait of Hormuz since the start of the conflict on February 28.

This disruption has created severe supply bottlenecks that the Trump administration is now attempting to address through multiple policy interventions.

In addition to the Jones Act waiver, the Trump administration has implemented several other measures to address the fuel price crisis.

“President Donald Trump issued a 60-day waiver of a longstanding U”

CNBC

These include easing sanctions on Venezuela's oil industry and temporarily freeing up Russian oil from US sanctions.

The Treasury Department issued a license that provides targeted relief from sanctions, allowing companies that existed before January 29, 2025, to buy Venezuelan oil.

However, these deals cannot involve payments to sanctioned Venezuelan entities such as PDVSA.

Transactions involving Russia, Iran, North Korea, Cuba and some Chinese entities will not be allowed.

These measures are part of a coordinated strategy to increase global oil supply and stabilize markets amid the ongoing Middle East conflict.

Despite the administration's efforts to address rising fuel costs, there is significant debate among experts about how much impact the Jones Act waiver will actually have on gasoline prices.

Economic analyses suggest the effect may be relatively modest, with JPMorgan projecting that a Jones Act waiver could save East Coast drivers about 10 cents per gallon.

E&E News

A 2023 working paper from the National Bureau of Economic Research found it could reduce average East Coast gasoline prices by 63 cents per barrel.

However, this translates to just a few cents per gallon of gas when considering that a standard barrel produces about 19 gallons of gasoline.

The Center for American Progress estimated waiving the Jones Act would decrease East Coast gas prices by 3 cents but could raise costs on the Gulf Coast.

The Cato Institute reported that a waiver would not 'produce dramatic drops in fuel costs,' noting that transportation is just one factor determining pump prices.

The international community has responded to the Iran conflict and its economic consequences with mixed reactions.

“Topline President Donald Trump on Wednesday suspended the Jones Act—a century-old shipping law that only allows cargo moved between U”

Forbes

Iran continues to maintain significant oil export capabilities despite the conflict.

Forbes

Reports indicate that Iran is still exporting oil through the Strait of Hormuz, earning an estimated $140 million daily from its oil exports.

At least 13 of Iran's supertankers carrying a total 24 million barrels of oil have passed through the strait since the conflict began.

The country has altered its shipping approach, allowing more Indian and Chinese ships to pass through the waterway while carrying out its blockade.

U.S. officials have acknowledged that Iran is exporting oil from the passage and stated they are 'fine with that' given global oil supply needs.

Treasury Secretary Scott Bessent told CNBC that the U.S. has allowed Iranian tankers to pass through the strait 'to supply the rest of the world.'