United States President Donald Trump has ordered a 60-day waiver of a century-old shipping law in a bid to stabilise energy markets disrupted by the conflict with Iran, as oil prices climb and global supply routes face sustained disruption.
The White House confirmed the temporary suspension of the Jones Act on Wednesday, allowing foreign-flagged vessels to transport fuel and other commodities between U.S. ports.
Press secretary Karoline Leavitt said the move would enable “vital resources like oil, natural gas, fertiliser, and coal to flow freely” and strengthen supply chains during the crisis.
The decision comes as the war involving the U.S., Israel and Iran constrains global energy flows, particularly through the Strait of Hormuz, which carries around a fifth of the world’s oil and liquefied natural gas.
Disruptions there have reduced tanker traffic and left hundreds of vessels stranded, according to shipping data cited by market intelligence firm Kpler.
Benchmark crude prices have responded sharply.
Brent crude rose 3.83% to settle at US$107.38 a barrel on Wednesday, while U.S. West Texas Intermediate closed near US$96.32.
The Jones Act, enacted in 1920 to support domestic shipbuilding and maritime employment, requires goods transported between U.S. ports to be carried on U.S.-built, owned and crewed vessels.
The limited size of that fleet- fewer than 100 compliant ships, according to PGIM chief global economist Daleep Singh - has long drawn criticism from economists who argue it raises domestic shipping costs and restricts supply flexibility.
By suspending the law, the administration is seeking to expand the pool of available tankers and reduce logistical bottlenecks as it also plans to release oil from the Strategic Petroleum Reserve.
However, analysts claim the measure is unlikely to materially shift fuel prices.
In a client note, Singh said the U.S. faces a structural mismatch between the type of crude it produces and the heavier grades its refineries are designed to process, limiting the policy’s impact.
Similar assessments have been made by fuel market analysts.
Patrick De Haan of GasBuddy told Al Jazeera the waiver may offset only a small portion of recent price increases, estimating a reduction of between 3 and 10 cents per gallon.
A 2022 analysis cited by Reuters likewise found minimal consumer benefit from comparable waivers.
Industry opposition has been swift.
A coalition of maritime labour organisations warned in a joint statement that the policy risks undermining national security and domestic shipping capacity while delivering negligible price relief.
Meanwhile, the largest union of U.S. merchant marine officers, The American Maritime Officers argue that fuel costs are driven primarily by global crude prices rather than domestic transport expenses, which account for less than one cent per gallon.
