The Trump administration temporarily suspended a 1920 maritime law on Wednesday to allow foreign ships to carry oil and other goods between U.S. ports, seeking to ease pressure on gasoline prices that have surged since the outbreak of war in the Middle East.
The 60-day waiver of the Jones Act will let non-U.S. vessels — which are cheaper to operate — transport oil, natural gas, fertilizer, and coal domestically.
The law normally requires ships to be built in the United States, owned by U.S. citizens, and crewed mostly by Americans, driving up costs compared with foreign-flagged ships.
White House press secretary Karoline Leavitt said the step was needed “to mitigate the short-term disruptions to the oil market as the U.S. military continues meeting the objectives of Operation Epic Fury,” Fox Business reported.
She added, “This action will allow vital resources like oil, natural gas, fertilizer, and coal to flow freely to U.S. ports for sixty days, and the Administration remains committed to continuing to strengthen our critical supply chains.”
Analysts and industry officials said the change is likely to have only a limited effect on pump prices.
Gasoline has risen 29% to an average of $3.84 a gallon since late February, when U.S.-Israeli strikes on Iran began. The biggest driver is crude oil, which has climbed about 40% as Iran effectively halted exports from the Persian Gulf and closed the Strait of Hormuz, a chokepoint for one-fifth of the world’s oil supply.
James Lightbourn, founder of Cavalier Shipping, said American tankers cost about $50,000 a day more to hire than foreign vessels, and using the latter could trim transportation costs by roughly 5 cents a gallon. MIT economist Christopher Knittel said research shows the Jones Act adds about 1.5 cents to the price of gasoline.
“It’s not a huge number, but adds up given how much gasoline we consume,” he said.
The American Maritime Partnership, which represents U.S. shipbuilders and unions, called the waiver unnecessary and risky.
“We are deeply concerned about this 60-day, broad waiver being abused and unnecessarily displacing American workers and American companies,” the group said, per Fox.
Critics of the law welcomed the move.
Colin Grabow of the Cato Institute said, “The Trump administration’s decision to grant Jones Act waivers amidst war and rising energy costs exposes both the law’s economic burden and the flimsiness of its national security rationale.”
The administration also announced last week it would release 172 million barrels of oil from the strategic reserve over four months.
President Donald Trump warned allies who have declined to help secure the Strait of Hormuz: “I wonder what would happen if we ‘finished off’ what’s left of the Iranian Terror State, and let the Countries that use it, we don’t, be responsible for the so called ‘Straight?’ (sic) That would get some of our non-responsive ‘Allies’ in gear, and fast!!!” he posted on Truth Social, as The Dallas Express reported.
The Jones Act has been waived in past crises, including a 2021 pipeline cyberattack and storms such as Katrina in 2005 and Harvey and Irma in 2017.
