WASHINGTON, D.C. — March 19, 2026 : The administration of U.S. President Donald J. Trump has authorized a temporary 60-day waiver of the Jones Act, allowing foreign-flagged vessels to transport critical commodities between domestic ports in an effort to stabilize energy markets and address supply chain disruptions linked to the ongoing conflict with Iran.
The decision, announced by the White House on March 18, temporarily suspends key provisions of the Merchant Marine Act of 1920, which normally requires that goods shipped between U.S. ports be carried on vessels that are American-built, owned, flagged, and crewed. The waiver applies specifically to essential commodities, including crude oil, refined petroleum products, natural gas, fertilizer, and coal.
Policy Move Tied to Energy Market Disruptions
The measure comes amid rising global energy prices following the launch of U.S.-Israeli military operations against Iran under the campaign known as Operation Epic Fury, which began on February 28, 2026. The conflict has significantly disrupted energy flows in the Middle East, particularly through the Strait of Hormuz, a key maritime corridor responsible for roughly 20% of global oil shipments.
As a result, domestic fuel prices in the United States have increased sharply. Data from the American Automobile Association (AAA) shows that the national average gasoline price has risen to approximately $3.84 per gallon, up from about $2.98 at the onset of the conflict, representing an increase of more than 27%.
White House Press Secretary Karoline Leavitt said the waiver is intended to mitigate short-term disruptions in energy markets and improve the movement of critical supplies. She stated that the decision would allow vital resources to be transported more efficiently between U.S. ports while broader military and economic objectives continue.
Scope and Implementation of the Waiver
Under the waiver, foreign-flagged vessels can immediately begin transporting covered commodities between domestic ports, increasing the available shipping capacity beyond the limited U.S.-flagged fleet. The policy is designed to ease logistical constraints, particularly for shipments originating from energy production hubs along the Gulf Coast to high-demand regions on the East and West Coasts.
Officials indicated that the waiver was approved under national defense provisions, citing the need to ensure uninterrupted supply to refineries, military installations, and agricultural operations. Fertilizer shipments were explicitly included to address seasonal demand during the spring planting period, while natural gas and coal transport are expected to support power generation and industrial activity.
The move is also intended to accelerate distribution of crude oil released from the Strategic Petroleum Reserve (SPR). The administration has authorized the drawdown of approximately 172 million barrels, which would typically take around 120 days to distribute under standard domestic shipping constraints. Expanded vessel availability is expected to shorten delivery timelines.
Background on the Jones Act
The Jones Act, enacted in 1920 in the aftermath of World War I, was designed to maintain a strong domestic maritime industry and ensure national security readiness. By limiting domestic shipping to U.S.-built and operated vessels, the law supports American shipbuilding and maritime employment.
However, the requirements also restrict the number of vessels available for domestic transport, particularly for specialized cargo such as liquefied natural gas and petroleum products. Temporary waivers have historically been issued during emergencies, including natural disasters and major supply disruptions, when additional shipping capacity is required.
Complementary Measures and Market Impact
The Jones Act waiver is part of a broader set of policy actions aimed at stabilizing energy markets. In addition to SPR releases, the U.S. Treasury Department has eased certain restrictions on Venezuela’s state-owned oil company, PDVSA, to allow additional crude oil to enter global supply chains.
Administration officials stated that while the waiver is expected to improve logistical efficiency and reduce transportation bottlenecks, its direct impact on retail fuel prices is likely to be limited. Analysts estimate that gasoline prices may decline by only a few cents per gallon, with global crude prices remaining the primary driver of costs.
Industry Response and Outlook
The decision has drawn criticism from domestic maritime industry groups. The American Maritime Partnership, which represents U.S. vessel owners and maritime labor unions, expressed concern that the waiver could temporarily displace American workers and benefit foreign shipping operators.
Industry representatives also argued that domestic shipping constraints are not the main factor behind rising fuel prices, suggesting that the policy’s economic impact may be modest.
Despite these concerns, analysts note that the waiver provides short-term flexibility in a constrained logistics environment. By expanding the pool of available vessels, the administration aims to ensure consistent distribution of energy and industrial commodities while geopolitical tensions continue to affect global supply routes.
The waiver is set to remain in effect for 60 days, with no formal announcement regarding a potential extension. Officials indicated that future decisions will depend on market conditions and developments in the Middle East.
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