Trump weighs Jones Act waiver to curb oil surge
Washington is preparing a temporary suspension of a century-old shipping rule as the administration seeks to blunt a sharp rise in fuel prices triggered by turmoil in global energy markets and disruptions to key maritime routes. Officials are examining whether to grant a short-term waiver of the Merchant Marine Act of 1920, widely known as the Jones Act, which requires goods transported between United States ports to […] The article Trump weighs Jones Act waiver to curb oil surge appeared first on Arabian Post.
Officials are examining whether to grant a short-term waiver of the Merchant Marine Act of 1920, widely known as the Jones Act, which requires goods transported between United States ports to be carried on vessels that are built, flagged and largely crewed domestically. The potential exemption would allow foreign-flagged tankers to transport crude oil, refined fuels and other commodities between domestic ports, a step aimed at easing supply bottlenecks and lowering transport costs across the country.
White House press secretary Karoline Leavitt confirmed that the measure is under consideration, describing it as a move to ensure energy and agricultural supplies continue flowing freely to ports during a period of heightened volatility in oil markets. Officials indicated that the decision has not yet been finalised but could take the form of a limited waiver lasting around 30 days.
Pressure on the administration has intensified after global crude prices climbed above the psychological threshold of $100 a barrel, reflecting disruptions linked to conflict involving Iran and instability in the Strait of Hormuz, a vital shipping corridor through which roughly a fifth of the world’s oil supply normally passes.
Higher crude prices have quickly filtered through to fuel markets. Retail gasoline prices in the United States climbed significantly during the past fortnight, reaching levels not seen since 2024 and fuelling concern about inflationary pressure on households and businesses. Analysts say supply interruptions and rising insurance and transport costs for tankers navigating the Gulf have tightened global energy flows, pushing benchmark crude futures sharply higher.
Energy analysts view the proposed Jones Act waiver as one of several emergency measures under discussion in Washington. The administration has already authorised the release of a large volume of crude oil from the Strategic Petroleum Reserve and coordinated with the International Energy Agency on a broader release from member nations’ stockpiles, part of a strategy to inject additional supply into global markets.
Supporters of suspending the maritime rule argue that the restriction limits the number of tankers available for domestic shipments and drives up shipping costs. Allowing foreign vessels to move fuel between United States ports could help refineries and distributors respond more quickly to regional shortages, particularly along the East Coast where domestic tanker capacity is limited. Economists note that such flexibility may reduce logistical delays and moderate spikes in regional gasoline and diesel prices.
Agricultural and manufacturing groups have also expressed support for a temporary exemption, saying it could improve the flow of fertilisers and other commodities that depend on coastal shipping. Industry representatives argue that transport constraints during energy disruptions can intensify price volatility across several sectors, including food production and freight.
Opposition to the proposal remains strong among maritime labour unions and shipbuilders, which have long defended the Jones Act as a cornerstone of national security and domestic industry. Labour leaders contend that the rule sustains a critical merchant marine fleet and protects thousands of jobs tied to shipyards, shipping companies and port operations.
Critics of the waiver warn that even a short suspension may set a precedent that weakens the law’s protective framework. Maritime unions argue that foreign vessels often operate under lower labour standards and safety regulations, raising concerns about fair competition and maritime readiness during national emergencies.
The Jones Act has historically been waived only during extraordinary circumstances such as major hurricanes or severe supply disruptions. Temporary exemptions were granted after Hurricane Harvey and Hurricane Maria in 2017 to ensure fuel deliveries to affected regions. Policy analysts say the administration’s current deliberations reflect similar emergency logic, though the context is driven more by geopolitical tensions and energy market volatility than by natural disasters.
Energy specialists remain divided on the likely effect of a waiver on fuel prices. Some economists estimate the policy would produce only modest price reductions because global crude costs — rather than domestic shipping expenses — are the primary driver of petrol prices. Others argue that logistical flexibility during crises can stabilise regional markets even if the nationwide impact remains limited.
Financial markets have been closely tracking developments as traders assess how government intervention might shape supply expectations. Oil futures eased slightly following announcements of strategic reserve releases and potential regulatory changes, though analysts say sustained relief will depend largely on geopolitical developments in the Middle East and the reopening of critical shipping lanes.
Energy companies, refiners and shipping groups are preparing contingency plans while awaiting formal guidance from federal authorities. Industry executives say a temporary suspension of the maritime law would allow more tankers to move fuel from Gulf Coast refining hubs to demand centres along the Atlantic seaboard, potentially easing pressure on inventories.
The article Trump weighs Jones Act waiver to curb oil surge appeared first on Arabian Post.
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