The Trump administration today announced a 60-day waiver of the Jones Act, the federal law requiring that goods shipped between U.S. ports be carried on vessels that are U.S.-built, U.S.-flagged, and predominantly crewed by Americans. The temporary waiver permits foreign-flagged vessels to carry oil, natural gas, fertilizer, coal, and other commodities between American ports. The administration has characterized the move as an effort to keep vital resources flowing freely while the military continues to execute "Operation Epic Fury."

The action follows a sharp rise in U.S. gasoline prices since U.S. and Israeli forces began strikes on Iran on February 28. The conflict has effectively closed the Strait of Hormuz, a critical chokepoint through which roughly one-fifth of global oil and LNG supplies pass. The disruption has also affected fertilizer shipments, raising concerns across agricultural supply chains.

NEFI will monitor whether the administration extends the waiver, what effect the loosened shipping restrictions have on delivered fuel costs and supply reliability, and any further action taken by the administration or Congress.

If you have any questions, please reach out to our Manager of Government Affairs, Liam Dotson, at Liam.Dotson@nefi.com.