US President Donald Trump has temporarily waived the century-old Jones Act for 60 days to help reduce the cost of transporting oil, gas, and other commodities within the United States. This move allows foreign-flagged vessels to transport goods between US ports, a step taken to ease the movement of energy supplies across the country.
White House press secretary Karoline Leavitt wrote on X that this action will allow vital resources like oil, natural gas, fertilizer, and coal to flow freely to US ports for sixty days. The Jones Act, formally known as the Merchant Marine Act of 1920, was passed by Congress to rebuild the US shipping industry after German U-boats devastated the country's merchant fleet during World War I.
At its core, the act requires that any ship transporting goods or passengers between US ports must be built in the US, owned by US citizens, and crewed primarily by Americans, effectively barring foreign-flagged vessels from domestic maritime trade. Temporary waivers are allowed in the "interest of national defense," typically granted by the Department of Homeland Security or the Department of Defense.
However, the decision has drawn criticism. The American Maritime Partnership, a coalition representing US vessel owners, operators, and maritime unions, said it was "deeply concerned" that the 60-day waiver could be misused, displacing American workers and companies. The group also argued the measure would have little effect on lowering fuel prices for consumers.
Oil markets have been volatile since the start of the US-Israel war on Iran, with tanker traffic through the Strait of Hormuz severely disrupted, affecting exports from major Middle Eastern producers. This disruption has pushed up prices worldwide, with Brent crude, the global benchmark, rising from about $70 to near $109 per barrel. Gasoline prices in the US have surged more than 25% above pre-war levels.
Analysts say easing domestic shipping restrictions is unlikely to be a sweeping solution. Patrick De Haan, head of petroleum analysis at GasBuddy, stated the waiver will simplify logistics, making it slightly cheaper and easier for products to flow, but warned not to expect steep price drops. He estimated it may offset 3 to 10 cents per gallon ($0.007 to $0.02 per liter) of price increases.
The waiver is part of broader efforts by the Washington regime to boost supply, including easing sanctions to allow US companies to do business with Venezuela's state oil firm and temporarily opening the door for Russian oil to re-enter global markets. The International Energy Agency (IEA) has pledged to release 400 million barrels of oil from emergency reserves, the largest coordinated release in its history, with the US contributing 172 million barrels from its Strategic Petroleum Reserve.
Even so, analysts claim these measures offer only short-term relief. Oil markets remain constrained by global supply disruptions, and it can take time for additional crude to reach refineries and filter through to consumers.
Source: www.aljazeera.com