US Mulls Shipping Waiver Amid Oil Shock

(MENAFN- IANS) Washington, March 13 (IANS) Facing a sharp rise in fuel prices and disruptions in global shipping routes, the White House is considering a temporary waiver of the century-old Jones Act to allow more vessels to deliver energy and agricultural supplies to US ports.

Press Secretary Karoline Leavitt confirmed that this major move is under consideration but has not yet been finalised.

“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,” Leavitt told IANS.

“This action has not been finalised,” she said in response to a question.

The Jones Act, enacted in 1920, requires that goods transported between US ports be carried on ships that are American-built, American-owned, and American-crewed. A temporary waiver would allow foreign-flagged ships to transport cargo such as oil and other energy products between US ports.

Officials stressed that any waiver under consideration would be temporary and narrowly targeted.

“The Administration can assure that this will not impact American shipbuilding,” another senior Trump administration official told IANS in response to a question.

The Trump administration is weighing the move as global shipping disruptions linked to the Iran conflict have slowed cargo movement and pushed up energy costs. Gas prices in the United States have climbed sharply in recent weeks. The national average reached nearly $3.60 per gallon, according to AAA, representing an increase of more than 22 per cent in a month, The Washington Post reported.

The shipping disruptions are tied in part to tensions around the Strait of Hormuz, a critical passage for global oil shipments. Iran’s newly appointed supreme leader, Ayatollah Mojtaba Khamenei, said Tehran would continue retaliatory actions and signaled the strategic waterway could remain closed.

The resulting uncertainty has rattled global energy markets. The Wall Street Journal reported that oil prices surged toward $100 a barrel amid concerns that the conflict could prolong disruptions to supply routes and deepen volatility in energy markets.

The surge in oil prices has also weighed on financial markets. US stocks fell sharply as investors worried about prolonged disruptions to global energy supplies and the broader economic impact of the crisis.

Even so, analysts say waiving the Jones Act may have only a limited effect on gasoline prices.

“Think whatever you want about the Jones Act - and I know some of you do - the impact on retail gas prices will be less than 2 cents a gallon,” Alex Jacquez, chief of policy and advocacy at the Groundwork Collaborative, said in a post on X.“Negligible.”

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