Trump Waives Jones Act and Eases Sanctions to Lower Fuel Prices

Following the outbreak of war with Iran in late February 2026, Donald Trump implemented a series of emergency measures to stabilize surging energy prices. The conflict effectively closed the Strait of Hormuz, blocking millions of barrels of oil per day and pushing U.S. gasoline prices from approximately $2.30 to a national average of $3.84 per gallon.

On March 18, the administration issued an unprecedented 60-day waiver of the Jones Act, allowing foreign-flagged vessels to transport oil, natural gas, fertilizer, and coal between U.S. ports. This measure aims to move fuel from the Gulf Coast to the Northeast and ensure the flow of resources to military installations. Simultaneously, the U.S. Treasury Department eased sanctions on Venezuela's state-owned oil company, PDVSA, allowing it to sell oil to U.S. companies provided revenues are deposited into U.S.-controlled accounts. Other interventions include a one-month license for stranded Russian oil and the release of 172 million barrels from the Strategic Petroleum Reserve as part of a 400-million-barrel coordinated effort with the International Energy Agency.

While the administration frames these actions as national defense necessities, the American Maritime Partnership and various labor unions condemned the Jones Act waiver, arguing it displaces American workers and provides negligible price relief. In contrast, agricultural and refinery groups welcomed the increased shipping flexibility. Amid the crisis, the administration officially rejected rumors that it would implement restrictions on U.S. oil and gas exports to lower domestic prices.