Trump Temporarily Freezes Jones Act to Ease Fuel Costs

President Trump is temporarily setting aside a 100-year-old shipping rule as his administration scrambles to curb rising fuel costs tied to the war in Iran. The White House on Wednesday approved a 60-day waiver of the Jones Act, a 1920 law that normally requires goods moving between US ports to travel on American-built, -owned, and -flagged ships, reports Bloomberg. For the next two months, foreign-flagged vessels will be allowed to move a wide range of energy-related cargo—e.g., crude oil, refined fuels, natural gas, coal, fertilizer, and other derivatives—between domestic ports. Officials say the goal is to ease bottlenecks, protect military supply lines, and soften the blow of higher prices.

Press Secretary Karoline Leavitt called the waiver "another step" to limit short-term oil market disruptions as US forces pursue "Operation Epic Fury." The conflict has largely shut the Strait of Hormuz, a major global energy chokepoint, blocking roughly 15 million barrels of oil and contributing to what the International Energy Agency describes as the biggest supply interruption in oil-market history. Brent crude climbed above $109 a barrel in New York trading on Wednesday amid signs the Iran war is intensifying.

Analysts expect the waiver to offer only modest relief, but it could slightly cut shipping costs for crude moving from the Gulf Coast to East Coast refineries, and for gasoline and diesel headed to the Northeast. A 2022 JPMorgan estimate suggested such a move could trim East Coast pump prices by about 10 cents a gallon. The decision adds to Trump's earlier steps, including releases from the Strategic Petroleum Reserve, limited easing of sanctions on Russian crude sales, and plans for US Navy escorts for tankers.

The Jones Act has been waived previously, including after 2017's Hurricane Maria decimated Puerto Rico, per the New York Times. But the waiver is already drawing pushback from shipbuilding interests and their congressional allies, who argue that even temporary exemptions undermine the domestic maritime industry. The Jones Act has also been criticized in the past, however, with some saying it leads to a sluggish delivery system, especially during emergency situations, reports the AP.