Trump Waives Jones Act and Eases Sanctions to Lower Energy Prices

President Donald Trump implemented a series of emergency measures in March 2026 to stabilize energy markets after a war with Iran effectively closed the Strait of Hormuz. The conflict pushed Brent crude prices above $100 per barrel and drove U.S. gasoline averages from roughly $2.30 to $3.84 per gallon. In response, 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 to alleviate supply bottlenecks, particularly from the Gulf Coast to the Northeast.

To further boost supply, the U.S. Treasury Department eased sanctions on Petróleos de Venezuela S.A. (PDVSA), authorizing the company to sell oil to U.S. firms and global markets, provided revenues are deposited into U.S.-controlled accounts. The administration also released 172 million barrels from the Strategic Petroleum Reserve as part of a coordinated 400-million-barrel global release with the International Energy Agency and granted short-term licenses to free stranded Russian oil.

While the Fertilizer Institute and various refiners welcomed the shipping flexibility, the American Maritime Partnership and labor unions condemned the Jones Act waiver. They argued the move displaces American workers and provides negligible relief at the pump. Meanwhile, the administration dismissed rumors of implementing U.S. oil and gas export restrictions, with officials stating no such plan exists. Trump himself pivoted his rhetoric during the crisis, characterizing the U.S. as a primary beneficiary of high oil prices due to its status as the world's top producer.