Trump Waives Maritime Law to Ease Oil Prices

With Brent crude prices surging above $110 a barrel overnight, Trump administration officials are moving to blunt the impact of rising energy costs on consumers.

A waiver would help move fuel from the Gulf Coast, where most refineries are located, to the East Coast, where much of the consumption occurs.

President Donald Trump has waived the century-old Jones Act in an effort to lower oil and gas prices, Laura Sanicola and Liz Moyer reported for Barron’s Daily on Mar. 19, 2026.

He issued a 60-day waiver of the maritime law, which requires that all vessels transporting goods between two US ports be American-built and owned.

The move is intended to allow freer flows of oil, natural gas, fertilizer, and coal to US ports amid short-term disruptions caused by the Iran war.

In practice, the Jones Act requires not only that ships be American-owned, but also built in the US, crewed entirely by Americans, and flagged in the US.

Researchers at MIT have found that the law raises the cost of domestic shipping relative to international shipping over comparable distances.

Goldman Sachs analysts said a waiver would help move fuel from the Gulf Coast, where most refineries are located, to the East Coast, where much of the consumption occurs.

Jones Act-compliant transport between these regions can be up to three times more expensive than using foreign vessels.

However, the waiver is expected to reduce East Coast fuel prices by only 60 to 80 cents per barrel. Charlie Papavizas, a lawyer at Winston & Strawn, noted that similar short-term waivers have typically been issued after hurricanes.