President Trump on Wednesday signed a 60-day waiver of the Jones Act, temporarily lifting the century-old law that restricts which ships can move fuel and other commodities between American ports. The move came as the national average gasoline price reached $3.84 per gallon, up nearly a dollar from $2.92 just one month ago, according to AAA data, with diesel climbing above $5 per gallon for the first time since December 2022.
- President Trump’s 60-day Jones Act waiver, signed on March 18, 2026, allows foreign-flagged vessels to transport oil, natural gas, fertilizer, and coal between U.S. ports.
- The national average gas price has surged to $3.84 per gallon from $2.92 one month ago, while diesel has topped $5 per gallon for the first time since December 2022.
- The administration simultaneously eased sanctions on Venezuela’s state oil company PDVSA, allowing U.S. companies to purchase Venezuelan crude through a U.S.-controlled payment account.
What the Jones Act Waiver Allows
The Jones Act, formally the Merchant Marine Act of 1920, requires all goods shipped between U.S. ports to travel on vessels that are American-built, American-flagged, and American-crewed. The law significantly limits the number of tankers available to domestic shippers. Under the 60-day waiver, foreign-flagged vessels can now carry oil, natural gas, fertilizer, and coal between domestic ports, according to White House Press Secretary Karoline Leavitt, who said the action “will allow vital resources like oil, natural gas, fertilizer, and coal to flow freely to U.S. ports for sixty days.”
The waiver is the latest in a series of emergency measures tied to the ongoing conflict with Iran, which has disrupted global energy markets and effectively closed the Strait of Hormuz, one of the world’s most critical oil-shipping routes. Brent crude futures hovered near $100 per barrel on Wednesday morning, according to CNBC.
How the Waiver Affects Business Costs
Energy analysts expect the waiver to provide limited relief at the pump. The Center for American Progress estimates the Jones Act waiver could reduce gas prices by approximately 3 cents per gallon, according to CBS News. The American Maritime Partnership, an industry group, put the figure even lower, saying domestic shipping accounts for less than one penny per gallon of the national gasoline cost.
For business owners who depend on fuel, fertilizer, and other bulk commodities, the more immediate effect may come from increased tanker availability along coastal and Gulf routes. Small businesses that rely on trucking and logistics have already absorbed weeks of climbing diesel costs, which have compounded the pressure from tariff-driven cost increases that hit manufacturers and retailers over the past year.
Venezuela Sanctions Eased on the Same Day
The Jones Act waiver was paired with a second energy measure. The Treasury Department on Wednesday issued a broad license allowing U.S. companies to purchase crude oil from Venezuela’s state-owned PDVSA, according to the Associated Press. The license does not fully lift sanctions. Instead, payments must flow to a U.S.-controlled account rather than directly to sanctioned Venezuelan entities, giving the American government oversight of the revenue.
The twin moves signal the administration’s growing urgency to stabilize energy prices as the Iran conflict enters its third week and shows no signs of de-escalation. Gold dipped below $5,000 per ounce on Wednesday, near a one-month low, as investors weighed the combined effect of shifting energy policy and the Federal Reserve’s rate decision expected later in the day.
What Comes Next
The 60-day waiver expires in mid-May, and the administration has not indicated whether it would seek an extension. Maritime unions and domestic shipbuilders, who view the Jones Act as essential for maintaining U.S. merchant marine capacity, have historically opposed waivers. The last broad Jones Act waiver was issued following Hurricane Maria in 2017 and lasted 10 days.
Frequently Asked Questions
What Is the Jones Act Waiver Trump Signed on March 18 2026?
President Trump issued a 60-day waiver of the Jones Act, a century-old maritime law that requires goods shipped between U.S. ports to travel on American-built, American-flagged, and American-crewed vessels. The waiver allows foreign ships to transport oil, natural gas, fertilizer, and coal between domestic ports.
How Much Will the Jones Act Waiver Lower Gas Prices?
Experts expect a modest impact. The Center for American Progress estimates the waiver could reduce gas prices by approximately 3 cents per gallon, while the American Maritime Partnership says the maximum impact of domestic shipping on gas costs is less than one penny per gallon.
Why Did the US Ease Venezuela Oil Sanctions at the Same Time?
The Treasury Department issued a license allowing U.S. companies to purchase Venezuelan oil to increase global supply and offset disruptions caused by the Iran war. Payments must go to a U.S.-controlled account rather than directly to sanctioned Venezuelan entities like PDVSA.
