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By Andrew Stanton
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President Donald Trump is considering issuing waivers of the Jones Act in its latest effort to curb rising gas prices amid the ongoing conflict with Iran in the Middle East.
“In the interest of national defense, the White House is considering waiving the Jones Act for a limited period of time to ensure vital energy products and agricultural necessities are flowing freely to U.S. ports. This action has not been finalized,” press secretary Karoline Leavitt told Newsweek in a statement.
Why It Matters
The United States and Israel struck Iran in a military operation dubbed Operation Epic Fury on February 28 after failed talks between the U.S. and Iran to address Iran’s nuclear program. The strikes have continued in the days since and killed Iran’s supreme leader, Ayatollah Ali Khamenei. Seven U.S. service members have died in the conflict.
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The war carries economic stress—particularly around oil prices—which further squeezes Americans' budgets already strained by cost-of-living increases. It also heightens political tension among Republicans ahead of the 2026 midterm elections, as polls indicate Democrats are likely to pick up seats in Congress.
In recent days, the Trump administration has sought to alleviate concerns about rising gas prices amid growing concern among motorists and Americans who use oil for heating.
What Is the Jones Act?
The Trump administration is planning to issue 30-day waivers for the Jones Act that would allow foreign oil tankers to supply refiners on the East Coast with fuel from the Gulf Coast and elsewhere, Bloomberg reported, citing people familiar with the matter.
The administration has told oil and shipping companies to prepare for a potential waiver, Reuters reported, citing two sources familiar with the discussions.
The Jones Act is a century-old law requiring goods shipped between American ports to be on ships built, owned and operated in the United States. It is formally known as Section 27 of the Merchant Marine Act of 1920. It was designed to ensure the United States maintained a strong merchant marine fleet capable of serving as a naval auxiliary in times of war or national emergency.
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When Was the Jones Act Established?
The law was passed following World War I. President Woodrow Wilson signed it into law on June 5, 1920.
It emerged from postwar anxieties about foreign dominance of U.S. coastal shipping. Before its passage, the presence of foreign-built or foreign-crewed vessels raised concerns about America’s maritime independence.
Beyond shipping restrictions, the Jones Act also plays a central role in maritime worker protections.
Americans remain divided about the law.
Supporters argue that it is crucial for maintaining domestic shipbuilding capacity, preserving maritime jobs, and safeguarding national security. Critics counter that the law inflates shipping costs, particularly for noncontiguous U.S. territories such as Puerto Rico, Hawaii, and Alaska, where consumers rely heavily on maritime transport.
Marine Labor Groups Oppose Jones Act Waiver
A coalition of maritime labor organizations sent a letter to the White House raising concerns about the potential for a Jones Act waiver.
The waiver would “create opportunities for foreign-flag operators that avoid paying U.S. taxes, rely heavily on low-wage labor, and operate under regulatory regimes that circumvent international labor and vessel safety standards in direct conflict of America’s national security and economic interests,” the groups warned.
“At a time when the Administration is working to strengthen our nation’s shipyards and expand the international U.S.-flag fleet under the recently unveiled Maritime Action Plan (MAP), a Jones Act waiver would undermine these core policy objectives,” the letter reads. “The Jones Act is foundational to maintaining a strong merchant marine, sustaining maritime employment, supporting shipbuilding capacity, and preserving the domestic industrial base essential to national security.”
It was signed by leaders from American Maritime Officers, the American Radio Association, the International Organization of Masters, Mates and Pilot, Marine Firemen’s Union, Marine Engineers’ Beneficial Association, Sailors’ Union of the Pacific and Transportation Trades Department of the AFL-CIO.
When Could Gas Prices Go Back Down?
Oil prices surged to more than $100 per barrel on Monday but have since fallen. Oil costs were about $91 barrels per barrel on Thursday, according to Crude Oil Futures. The administration has also announced it would release 172 million barrels of oil from the Strategic Petroleum Reserve to combat gas prices, according to Reuters.
The Paris-based International Energy Agency (IEA) said it will release 400 million barrels of oil from its members’ emergency reserves to help curb rising oil prices amid the war.
U.S. Energy Secretary Chris Wright expressed optimism about gas prices falling again during an interview on CNN’s State of the Union over the weekend.
“The Trump administration, in stark contrast to the Biden administration, his goal has been to lower energy prices, the Biden administration quite successful in raising energy prices. Gasoline today is still $1.50 a gallon cheaper than it was in the middle of the Biden administration But you're right. We want it back below $3 a gallon. And it will be again before too long,” he said.
He added that “this is a weeks, this is not a months thing.”
What Is the Strait of Hormuz?
Oil prices have surged as the war involving Iran widened, sparking uncertainty across global energy markets.
The Strait of Hormuz, a critical chokepoint for global oil transport, has been a focal point of concern, with fears that any prolonged instability could significantly constrain supply.
The strait lies between Iran to the north and Oman to the south, with shipping lanes passing through the territorial waters of both countries, but the strait is governed by international maritime law. Iran exerts significant influence because of its long northern coastline and control of nearby islands overlooking the narrow lanes, while Oman oversees the southern side.
The United States and allied navies also operate in the area to protect freedom of navigation, though Iran’s military posture has given it leverage during periods of conflict.
Roughly 20 million barrels of oil per day, about one‑fifth of global petroleum consumption, normally pass through the Strait of Hormuz, according to U.S. Energy Information Administration data. The waterway is also a critical route for liquefied natural gas, carrying about 20 percent of global LNG trade, largely from Qatar. Most of the oil shipped through the strait is bound for Asian markets, making disruptions especially significant for global energy prices.
Shipping has declined due to Iranian threats, missile and drone attacks near the waterway and U.S. military strikes on suspected Iranian minelaying vessels. Many shipping companies and insurers have pulled back because of safety risks and soaring insurance costs, effectively halting commercial traffic even without a formal blockade.
What People Are Saying
President Donald Trump told Cincinnati-based news station WKRC on Wednesday: “I filled it up once, and I’ll fill it up again, but right now, we’ll reduce it a little bit, and that brings the prices down. We have to get rid of the evil, it was great evil, taking place in Iran, as you know, and our military has been unbelievable.”
AAA wrote in a gas prices update on Thursday: “Spring Break season is here as the national average for a gallon of regular gasoline jumped nearly 35 cents since last week. Current prices are similar to the spring of 2024. Gasoline demand increases this time of year as the weather warms up and more drivers hit the road. Crude oil prices play a major role in what drivers pay at the pump, and prices have surpassed the $100/barrel mark multiple times in recent days.
"To help offset rising prices, the U.S. announced it will release 172 million barrels of oil from its strategic reserves over four months. The move is part of a broader effort by the International Energy Agency to release a total of 400 million barrels of oil, the largest emergency release in its history.”
What Happens Next
More details about when the potential waivers could be issued remained unclear early Thursday afternoon.
Update 3/12/2026 3:03 p.m. ET: This article was updated with additional information.
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