President Trump is considering waiving the Jones Act to speed up oil shipments as his administration works to bring down gas prices.
“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 US ports,” press secretary Karoline Leavitt said. “This action has not been finalized.”
The Jones Act, part of the Merchant Marine Act of 1920, is a federal law requiring goods transported by sea to be carried on US-owned and -crewed vessels. It has been waived during national emergencies, such as hurricanes.
The move comes as the price of oil surged briefly to over $100 a barrel on Thursday.
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The national average for gas prices in the US hit $3.60 a gallon on Thursday for the first time since May 2024, according to AAA.
Suppliers have complained that the Jones Act hampers their ability to get goods, considering the US does not have a strong shipbuilding industry.
The waiver would allow foreign tankers – which are cheaper – to move oil to US refineries and ease some of the pain at the pump.
Another option for the president is to use the East-West pipeline on the Arabian Peninsula. The Saudis built the 1,200 kilometer pipe to move oil via land.
“The Saudis built it 45 years ago thinking that, one day, Tehran would manage to do what was then unthinkable and halt shipments through the [Strait of Hormuz],” analyst Javier Blas told Bloomberg News.
Gas prices are becoming a politically tricky issue for the president as voters prepare for the November midterm elections that will decide the control of Congress.
Trump has tried to ease the panic by saying the spike is temporary. But a Reuters/Ipsos poll found a majority of Americans expect the prices to go even higher, while a Morning Consult poll found 48% of people blame the matter on the president.
On Wednesday, Trump argued gas “prices are coming down very substantially.”
The message the administration is sending is that it’s a “short term spike” for a “long-term gain” for homeland security.
Additionally, Trump announced a plan to release 172 million barrels of oil from the Strategic Petroleum Reserve and an agreement from the International Energy Agency member countries to release 400 million barrels of oil in an effort to stabilize the market and get prices down.
Oil prices spiked this week over worries about the Strait of Hormuz, a key waterway off Iran’s coast where a fifth of the world’s oil passes through on a typical day. It is the only entry and exit route in the Persian Gulf.
Operation Epic Fury and Iranian counterattacks have halted most shipping traffic in the strait. Some vessels that have attempted to go through have been attacked.
Follow The Post’s latest coverage on the blocked Strait of Hormuz and its lasting effects
Trump said American military forces will be sent to protect shipping vessels, but Energy Secretary Chris Wright said the US is not at that point – yet.
“It’ll happen relatively soon but it can’t happen now,” Wright told CNBC on Thursday.. “We’re simply not ready. All of our military assets right now are focused on destroying Iran’s offensive capabilities and the manufacturing industry that supplies their offensive capabilities.”
He noted the Navy will likely be in a position to escort tankers by the end of this month.
However, Iran’s new leader Mojtaba Khamenei said Thursday that his regime would continue to block passage through the strait.
