Trump temporarily waives century-old shipping law amid rising fuel costs

Amid the ongoing US and Israeli war against Iran, President Trump temporarily waived the Jones Act for 60 days. The Jones Act requires goods shipped between US ports to be carried on US-built, US-flagged, and US-owned vessels. This waiver, issued on March 18, 2026, allows foreign-flagged ships to transport cargo to US ports in an effort to lower rising fuel costs. The administration defends the move as a way to ensure vital resources flow freely, while maritime industry groups question its effectiveness, arguing that crude oil prices, not domestic shipping costs, are the primary driver of gasoline prices. Iran's counteroffensive has largely blocked shipping through the Strait of Hormuz.

Amid escalating conflict with Iran and subsequent disruptions to global oil supply, President Trump has temporarily suspended the Jones Act for 60 days. The Jones Act requires goods shipped between US ports to be transported on American-built and operated vessels. This waiver allows foreign-flagged tankers to transport energy products like oil, natural gas, fertilizer, and coal between US ports. The White House stated the decision aims to mitigate short-term disruptions to the oil market caused by the closure of the Strait of Hormuz due to the US-Israeli offensive against Iran. The suspension is intended to ensure the free flow of vital resources to US ports during this period of instability.