Trump waives Jones Act in bid to stanch rise in oil prices

by Maydeen Merino, Washington Examiner, March 18, 2026

President Donald Trump has waived the Jones Act, a law mandating that goods shipped between U.S. ports be carried only by American-built ships, in an effort to place downward pressure on elevated oil prices.

The president issued a 60-day waiver of the Jones Act as part of an effort to address high oil prices caused by the effective closure of the Strait of Hormuz off the coast of Iran.

“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,” White House press secretary Karoline Leavitt said in a statement.

“This action will allow vital resources like oil, natural gas, fertilizer, and coal to flow freely to U.S. ports for sixty days, and the Administration remains committed to continuing to strengthen our critical supply chains,” she added.

The Jones Act requires that all goods transported between U.S. ports be moved by ships that are U.S.-built, flagged, and crewed. The suspension of the law would allow foreign tankers to transport oil around the country. The waiver is aimed at lowering the cost of transporting oil from refineries in the Gulf to the East Coast and other parts of the country.

Economists generally think that the Jones Act raises some prices for domestic consumers.

Eliminating the Jones Act would have reduced average prices for East Coast gasoline, jet fuel, and diesel by between $0.50 and $1 per barrel in 2018-19, according to a study by economists at the University of Chicago and Boston College published by the Journal of Law and Economics in 2025. They also found, though, that it would have raised gas prices on the Gulf Coast by about $0.30 a barrel.

Oil prices have remained elevated since the United States and Israel carried out strikes against Iran almost three weeks ago. 

The war has effectively closed the Strait of Hormuz, a significant trading route in the region that moves nearly 20 million barrels of crude oil daily, or about a fifth of global supply. The halt on trade going through the strait has caused energy prices to soar.

The administration has taken several actions and made several proposals to lower energy costs, including plans to release 172 million barrels of oil from the Strategic Petroleum Reserve. The administration has also announced plans to provide insurance for ships in the strait, suggesting that the U.S. Navy could escort tankers.