Washington pulled one of its few available levers. It may not move the needle much.
The Jones Act of 1920 requires that goods shipped between U.S. ports travel on vessels that are U.S.-built, U.S.-flagged, and at least 75% U.S.-crewed. There are fewer than 100 ships in the country that qualify.
By temporarily suspending those requirements, Trump opens domestic shipping routes to the far larger pool of foreign tankers. The practical effect: cheaper, more available ships can now move Gulf Coast oil to East Coast refineries and ports, and fuel from energy-producing regions to more populated ones.
White House press secretary Karoline Leavitt framed it as a national security measure, calling it part of the effort to "mitigate the short-term disruptions to the oil market as the U.S. military continues meeting the objectives of Operation Epic Fury."
Brent crude rose more than 6% Wednesday, topping $109 per barrel. U.S. crude was up nearly 3% at $99.
The Jones Act waiver addresses domestic shipping costs — not the global supply disruption caused by the Strait of Hormuz closure. Those are two different problems.
The Center for American Progress estimates the waiver would lower gas prices by roughly 3 cents per gallon. The International Brotherhood of Boilermakers, which represents Jones Act workers, put the number even lower — under a penny.
The Transportation Institute, which advocates for the Jones Act, said in a statement: "This waiver will not reduce gas prices" and vowed to monitor every vessel movement for compliance.
The waiver isn't Trump's only move this week. On Wednesday, the administration also eased sanctions on Venezuela, allowing U.S. companies to buy Venezuelan oil — another attempt to increase global supply and offset the Hormuz disruption.
The Jones Act waiver expires in 60 days. Whether oil prices come down by then will depend far more on what happens at the Strait of Hormuz than anything happening between U.S. ports.
