Kamal Ghorui
US President Donald Trump has announced a temporary 60-day waiver of the century-old Jones Act, a move aimed at easing rising energy prices as global oil markets remain volatile due to escalating tensions involving Iran.The decision allows foreign-flagged ships to transport fuel and other essential commodities between US ports, a major shift from long-standing domestic shipping rules.The White House said the waiver is intended to ease the economic impact of supply disruptions triggered by the ongoing conflict in the Middle East. Press secretary Karoline Leavitt said the move would “mitigate short-term disruptions to the oil market” and ensure that critical resources such as oil, natural gas, fertiliser and coal can move more freely across US ports.The announcement comes as oil prices have surged sharply, with supply chains strained by halted shipping routes and instability in key global chokepoints.
What is the Jones Act
The Jones Act, officially called the Merchant Marine Act of 1920, is a US federal law that regulates domestic maritime trade.Enacted in the aftermath of World War I, the law was designed to strengthen the US shipping industry after heavy losses from German submarine attacks.Under the act, any goods transported between US ports must be carried on ships that are:
- Built in the United States
- Owned by US citizens
- Registered under the US flag
- Crewed primarily by Americans
The law aims to support national security and maintain a strong domestic shipping fleet. However, critics argue that it limits competition and raises transportation costs, particularly for fuel and essential goods.
Why the waiver now
The temporary suspension comes as geopolitical tensions in the Middle East, especially the conflict involving Israel and Iran, have disrupted global energy supplies.A key flashpoint has been the Strait of Hormuz, through which a significant portion of the world’s oil supply passes. Disruptions in this region have pushed crude prices sharply higher, with ripple effects across global markets.In the US, petrol and diesel prices have climbed steeply in recent weeks, prompting pressure on the administration to act quickly.By waiving the Jones Act, the government hopes to increase shipping flexibility, allowing foreign vessels to help move fuel domestically and potentially ease supply bottlenecks.The Jones Act waiver coincides with the US Treasury easing sanctions on Venezuela’s state-owned oil company Petroleos de Venezuela SA (PDVSA), allowing American firms to resume business with the oil giant under certain restrictions, as the Trump administration seeks to boost global crude supplies during the Iran war.
Will it lower fuel prices
Experts say the impact may be limited. While the waiver could improve logistics and reduce transportation constraints, fuel prices are influenced by global crude markets, refinery capacity and geopolitical risks. Any relief at the pump is likely to be temporary.Still, the move signals a broader effort by the Trump administration to stabilise energy markets, alongside steps such as easing oil-related restrictions and tapping strategic reserves.
