• President Trump waives the Jones Act to address surging fuel prices amid the ongoing war in Iran, enabling cheaper foreign tankers to move petroleum.
  • Gasoline prices have risen about 60 cents per gallon nationwide, hitting around $3.60, with East Coast impacts most acute due to limited U.S. tankers.
  • The move responds to political pressure and invokes national defense exceptions, potentially saving 10 cents per gallon but facing debates over domestic shipping protections.

President Trump has waived the Jones Act, a 1920 maritime law requiring goods shipped between U.S. ports to use American-built, flagged, and crewed vessels, in an effort to curb high fuel prices. The White House announced the waivers "in the interest of national defense" to ensure energy products flow freely, as stated by Press Secretary Karoline Leavitt on March 11-12, 2026. This follows a coordinated release of 172 million barrels from the U.S. Strategic Petroleum Reserve, part of a 400 million barrel global effort by International Energy Agency members.

Gasoline prices have surged about 60 cents per gallon nationwide, hitting around $3.60, with East Coast impacts most acute due to limited U.S. tankers. The waivers could enable cheaper foreign tankers to move Gulf Coast petroleum to high-price East Coast ports, potentially saving 10 cents per gallon per a 2022 JP Morgan estimate. Gas prices rose due to Iran conflict disruptions in the Strait of Hormuz, pushing crude near $100/barrel amid national and global supply strains.

The move responds to political pressure over fuel costs during the U.S.-Israel war with Iran, which threatens Hormuz shipping. It invokes national defense exceptions to the Jones Act, a policy long debated by free-trade advocates at groups like the Cato Institute. East Coast and import-dependent consumers could see modest relief, but experts caution other market forces may limit benefits. Debates highlight the Jones Act's economic harms versus domestic shipping protections, sparking calls for reform amid public frustration with $0.64/month price hikes.

A 30-day waiver is planned, potentially easing Northeast shortages short-term, though experts predict limited price drops. Long-term, it could pressure permanent reform but risks U.S. shipbuilding jobs if extended. The Jones Act has faced waivers during crises like hurricanes, but never fully suspended; Trump previously eyed changes in 2017-2019. Similar 2022 proposals amid Ukraine-related prices offered precedents for modest East Coast savings.

IEA's historic oil release and California importing Bahamian fuel show parallel responses to shortages. Ongoing Iran war scrutiny renews Jones Act debates in Pacific regions. Efforts to reach out to shipping industry representatives for comment were unsuccessful, but sources familiar with the matter indicate mixed reactions from domestic firms.