Trump Temporarily Waives Jones Act in Bid to Lower Gas Prices Amid Iran Conflict
President Donald Trump has issued a 60-day temporary waiver of the Jones Act, a century-old maritime law, as part of efforts to ease surging fuel prices triggered by the ongoing U.S. military operations against Iran. The move, announced on March 18, 2026, allows foreign-flagged vessels to transport oil, gasoline, diesel, natural gas, fertilizer, and other energy products between U.S. ports, aiming to improve supply flows and reduce transportation costs at a time when global disruptions have pushed domestic gas prices higher.
The waiver comes as the conflict in the Middle East, including attacks in the Strait of Hormuz, has driven up crude oil prices near or above $100 per barrel and increased U.S. gasoline costs. National average regular gasoline stood at approximately $3.63 to $3.72 per gallon in recent days, up significantly from around $2.94 a month earlier, according to multiple reports.
What the Jones Act Waiver Means
The Merchant Marine Act of 1920, commonly known as the Jones Act, requires that goods shipped between U.S. ports be carried on vessels that are U.S.-built, U.S.-owned, and crewed primarily by American workers. Proponents say it protects domestic shipbuilding and maritime jobs, but critics argue it raises shipping costs and limits flexibility during supply crunches.
Under the temporary waiver, justified on national defense grounds, foreign tankers can now move energy products domestically for 60 days. White House Press Secretary Karoline Leavitt stated: “President Trump’s decision to issue a 60-day Jones Act waiver is 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. This action will allow vital resources like oil, natural gas, fertilizer and coal to flow freely to U.S. ports for sixty days.”
The administration had been weighing the option for days, with initial reports suggesting a possible 30-day period before the final 60-day waiver was confirmed.
Potential Impact on Gas Prices and Consumers
Estimates of the waiver’s effect vary. A 2022 JPMorgan analysis projected it could save East Coast drivers roughly 10 cents per gallon. Other studies, including a 2023 National Bureau of Economic Research working paper, suggested larger per-barrel reductions for gasoline, diesel, and jet fuel on the East Coast.
However, experts and industry groups caution that the relief may be modest. Crude oil costs remain the dominant factor in pump prices, and international tanker rates have also risen amid the conflict. Maritime labor unions have opposed the waiver, arguing it does little to address root causes and could threaten American jobs and tax revenue.
Key Facts About the Waiver:
- Duration: 60 days, effective immediately as of March 18, 2026.
- Scope: Applies to crude oil, refined fuels, natural gas, fertilizer, coal, and related energy/agricultural products.
- Purpose: Ease supply chain bottlenecks from Iran-related disruptions and support national defense needs.
- National Average Gas Price Trend: Rose from ~$2.94/gallon to ~$3.63–$3.72/gallon in recent weeks.
- Additional Measures: The administration is also tapping the Strategic Petroleum Reserve, with plans to release millions of barrels.
Background and Broader Context
The Jones Act waiver is a rare step, typically used during major emergencies such as hurricanes. Past administrations, including Trump’s first term and Biden’s, granted limited waivers after natural disasters like Hurricanes Maria and Fiona.
This latest action ties directly to escalating tensions following U.S. and Israeli strikes on Iran, which have disrupted global shipping and energy markets. The Trump administration has framed the waiver as a practical tool to stabilize domestic energy supplies without long-term changes to the law.
The decision has drawn mixed reactions. Supporters view it as a swift response to help American families facing higher fuel costs for commuting, heating, and goods transportation. Opponents, including some maritime interests, worry it undermines the domestic shipping industry built to sustain U.S. maritime capabilities.
For everyday U.S. drivers, any price relief would likely appear gradually as fuel moves more efficiently through the supply chain, particularly benefiting East Coast and Northeast markets that rely heavily on Gulf Coast shipments.
Frequently Asked Questions (FAQ)
Q: What exactly is the Jones Act? A: A 1920 law requiring cargo shipped between U.S. ports to use American-built, owned, and crewed vessels to protect domestic maritime industries.
Q: How long will Trump’s Jones Act waiver last? A: 60 days, as announced on March 18, 2026.
Q: Will this waiver significantly lower gas prices? A: It may provide modest relief—estimates range from a few cents to about 10 cents per gallon on the East Coast—but crude oil prices remain the main driver.
Q: Does the waiver apply nationwide? A: Yes, it allows foreign ships to transport specified energy and agricultural products between any U.S. ports during the 60-day period.
Q: Why now? A: Rising fuel prices linked to disruptions from the U.S. military campaign against Iran, including impacts on the Strait of Hormuz.
By Mark Smith
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