The administration of Donald Trump has announced a 60-day waiver of the Jones Act to ease the movement of fuel and fertiliser across the United States, as supply chains come under pressure from the ongoing conflict involving Iran.
The decision, unveiled on Wednesday, aims to mitigate rising energy costs and logistical disruptions triggered by the closure of the Strait of Hormuz—a critical maritime corridor that handles nearly one-fifth of global oil and liquefied natural gas flows.
White House spokesperson Karoline Leavitt stated that the waiver is part of broader efforts to address short-term market instability amid ongoing military operations under Operation Epic Fury. She added that the move would enable essential commodities such as oil, natural gas, coal, and fertilisers to move more freely between U.S. ports.
The Jones Act typically mandates that goods transported between U.S. ports must be carried on vessels that are U.S.-built, U.S.-flagged, and predominantly U.S.-owned. While the law supports domestic shipping and maritime employment, it significantly limits vessel availability for domestic trade.
By temporarily lifting these restrictions, the administration is allowing foreign-flagged ships to carry cargo between U.S. ports, potentially reducing freight costs and accelerating deliveries. This is particularly important as fertiliser supply disruptions raise concerns for the agricultural sector, already grappling with cost pressures.
However, analysts caution that while the waiver may improve logistics efficiency, its impact on retail fuel prices is expected to be limited.
The move comes at a politically sensitive time, as elevated energy prices pose risks for the administration and its allies, who have consistently emphasised affordable fuel as a key policy priority.