Fighting "Wartime High Oil Prices"! Trump Announces 60-Day Waiver of Jones Act, Foreign Vessels Permitted to Enter US to Transport Oil and Gas

As the US-Iran conflict enters its third week, international oil prices remain high. President Trump announced on Wednesday a temporary exemption from the century-old Jones Act. This 60-day waiver will break the restriction that all ships transporting goods between U.S. ports must be American-built, owned, and operated, allowing foreign oil tankers to participate in energy transfers within U.S. waters to alleviate the energy supply chain crisis caused by the closure of the Strait of Hormuz.
(Background: Trump insists on the “Save America Act”! CLARITY Crypto Bill stalls in the Senate, analysts say it’s unlikely to pass before April)
(Additional context: Why is Trump calling on multiple countries to defend the Strait of Hormuz, yet has no allies willing to support him?)

Table of Contents

Toggle

• War-time measures after oil prices surpass $100
• Easing the “US ship shortage” bottleneck to stabilize retail gasoline prices
• Short-term benefits, but not a long-term solution

The U.S. government is taking aggressive measures to minimize the economic impact of the US-Iran war. On Wednesday (the 18th), President Trump announced a critical national defense exemption, temporarily suspending the enforcement of the Merchant Marine Act of 1920 (commonly known as the Jones Act). This law originally required all cargo transported between U.S. ports to be carried by ships built, owned, and operated in the United States.

With the war disrupting global oil supplies, this move aims to free up more transportation capacity, allowing domestic crude oil and refined products to be shipped more quickly from the Gulf Coast to the urgently needed East Coast.

War-time measures after oil prices surpass $100

The conflict between the U.S. and Iran, allied with other nations, has entered a critical phase. Iran has announced an indefinite blockade of the Strait of Hormuz, threatening about 20% of the world’s oil supply. Brent and WTI crude oil prices both surged over 9% this week, briefly reaching $100 per barrel.

White House Press Secretary Karoline Leavitt stated, “For national defense interests, the White House has decided to provide a 60-day exemption to ensure the free flow of essential energy products and agricultural necessities through U.S. ports.” While such exemptions have previously been used temporarily after hurricanes and natural disasters, this “wartime exemption” scale and focus reflect the administration’s extreme anxiety over inflation spiraling out of control again.

Easing the “US ship shortage” bottleneck to stabilize retail gasoline prices

The Jones Act has long been viewed as a barrier to lowering domestic energy costs. Due to the limited number of U.S.-flagged ships meeting regulatory requirements and their high chartering costs, the East Coast often prefers importing oil from overseas rather than purchasing from Texas. Trump pointed out that allowing more flexible participation by foreign fleets would make domestic fuel supply more resilient, thereby reducing retail gasoline prices per gallon.

Data shows that nationwide average gasoline prices have risen 27% since the war broke out in late February, reaching $3.72 per gallon. Trump posted on Truth Social, “We will make a lot of money, but we also have to protect hardworking American families from energy shocks.”

Short-term benefits, but not a long-term solution

Energy analysts have expressed cautious optimism but also warned that this move only alleviates logistical bottlenecks and does not address the fundamental issue of global oil production cuts. The International Energy Agency (IEA) pointed out that Middle Eastern oil producers have reduced daily output by 10 million barrels, the largest supply disruption in history. Although the U.S. has released a record 400 million barrels from strategic reserves (SPR), high oil prices are expected to persist through the first half of 2026 as long as the Strait of Hormuz remains closed.

Currently, the U.S. Navy cannot fully escort civilian ships through the strait; it is expected to be able to do so by the end of this month. Until then, waiving the Jones Act remains one of the most direct and politically courageous measures Washington can take to curb domestic inflation.