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Trump waives Jones Act for 60 days to free flow of oil to US ports | Commodity news

US President Donald Trump’s administration on Wednesday announced a 60-day waiver of the Jones Act shipping law, temporarily allowing vital resources like oil, natural gas, fertilizer, and coal to flow freely to U.S. ports for sixty days, to combat price increases and supply disruptions from the conflict in the Middle East.

The administration is issuing a 60-day waiver of the Jones Act, according to a Wednesday post from White House press secretary Karoline Leavitt.

The goal, Leavitt said in a statement, is to strengthen critical supply chains and to mitigate the short-term disruptions to the oil market amid the Middle East conflict.

“President Trump’s decision to issue a 60-day Jones Act waiver is just another step to mitigate the short-term disruptions to the oil market as the U.S. military continues meeting the objectives of Operation Epic Fury,” Leavitt said.

“This action will allow vital resources like oil, natural gas, fertilizer, and coal to flow freely to U.S. ports for sixty days, and the Administration remains committed to continuing to strengthen our critical supply chains.”

The Jones Act applies to merchandise being transported by water between U.S. points. The law requires that this cargo is to be shipped solely aboard vessels that are U.S.-built, U.S.-citizen owned, and, registered in the U.S., which means crewed by Americans.

An often-asked question is “can the U.S.-owned, -built, -crewed, – registered requirements of the Jones Act be waived to allow foreign-flag vessels in some circumstances?” The answer is yes, the U.S. Maritime Administration notes, however, Jones Act exemptions are rare as the only basis for an exemption is “interest of national defense.” 

The White House press secretary confirmed the decision on Wednesday, leading to expressions of concern from the domestic shipping sector.

The American Maritime Partnership (AMP) wrote in a statement on Wednesday that it had concerns about the waiver.

“We are deeply concerned about this 60-day, broad waiver being abused and unnecessarily displacing American workers and American companies,” it said. “The law sets a high bar: this waiver exists solely to address an immediate threat to military operations, not to displace American workers or reward foreign operators. Every vessel movement under this waiver must be publicly disclosed and justified according to federal law. We will be watching closely – and so will the American public.”

Oil prices have risen sharply because of the war in Iran, sparking uncertainty across global energy markets. Shipping through the Strait of Hormuz, a key shipping channel for oil and other products, has effectively halted. About one-fifth of global oil consumption goes through the strait on an average day.

“President Trump’s priority is always the American people. By temporarily waiving the Jones Act, he is ensuring that oil and other energy resources flow to Americans across the country even during times of disruption,” US secretary of energy Chris Wright wrote in a post on X. “This will help ease short-term price impacts in the oil market as we work every day to lower prices and raise wages for Americans,” he added.

Even with oil prices surging and appeals from Trump and Washington, U.S. allies are declining to take part in military efforts to secure the Strait of Hormuz.

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