What is the Jones Act? White House considering suspending shipping law to lower oil prices

The Trump administration has reportedly instructed US oil companies and shipping groups to prepare for a potential suspension of the century-old Jones Act, which governs domestic shipping.

This measure is intended to facilitate the movement of fuel across the country, according to two sources familiar with the ongoing discussions.

An announcement could be made as early as Thursday, with the aim of combating soaring fuel prices that have escalated since the commencement of the US-Israeli war on Iran.

White House spokesperson Katherine Leavit confirmed that the administration is considering waiving the Jones Act for a period, though she noted the action had not been finalised.

Under the Jones Act, goods shipped between U.S. ports must be carried on vessels that ​are U.S.-built, U.S.-flagged and mostly U.S.-owned. The ​requirement sharply limits the number of tankers available for domestic ‌shipments.

Waiving ⁠the rule temporarily would allow foreign ships to carry fuel between U.S. ports, potentially lowering shipping costs and speeding deliveries.

The United States has issued Jones ​Act waivers ​in the ⁠past only sparingly, typically in response to major supply disruptions. The most recent ​waivers came after hurricanes such as ​Hurricane Harvey ⁠and Hurricane Maria in 2017.

At the time, the U.S. Department of Homeland Security temporarily allowed foreign-flagged ⁠vessels ​to transport fuel between U.S. ports ​to ease shortages and speed deliveries to affected regions.