Trump Administration Issues 60-Day Jones Act Waiver Amid the Iran War
KEITH B. LETOURNEAU Partner
NATALIE M. RADABAUGH Associate
G. EVAN SPENCER Associate
Based on a request by the Department of War, the Trump Administration announced a 60-day limited waiver of the Jones Act( 46 U. S. C. § 55102) on March 17, 2026, in response to energy market volatility amid the ongoing U. S.-Israel war against Iran. According to the March 19 bulletin published by U. S. Customs and Border Protection(“ CBP”), the waiver permits foreign-flag vessels to transport certain goods, including oil, natural gas, coal, and fertilizer( see full List of Potentially Covered Products as of March 18 2026), between U. S. ports for the duration of the waiver period, which will expire on May 17, 2026, at 11:59 p. m. E. D. T.
Background on the Jones Act The Jones Act( formally known as the Merchant Marine Act of 1920) was enacted by Congress in 1920 as part of an effort to rebuild the U. S. shipping industry after World War I. At its core are regulations over coastwise trade, which require that any vessel transporting goods or passengers between U. S. ports must be built in the United States, 75-percent-owned by U. S. citizens at every tier of ownership, and crewed by U. S. citizens with limited exceptions— effectively barring foreign-flag vessels from the U. S. domestic maritime trade. While the law has long been supported by domestic shipping companies and shipyards, labor unions, and national security advocates, it does in effect reduce the number of potential vessels available to move goods around the United States, to the ire of various consumer groups.
The Iran War and Energy Market Disruption The waiver was issued amid severe disruption to the global energy markets following the outbreak of the U. S.-Israel war against Iran, which began on February 28, 2026. Tanker traffic through the Strait of Hormuz— a critical global chokepoint through which roughly 20 percent of the world’ s oil normally passes— has been almost entirely halted, with Iran imposing a de facto blockade on commercial shipping. While a limited number of vessels have transited through the strait, others have been attacked and severely damaged as part of Iran’ s blockade, with numerous seafarers killed in the attacks. These disruptions have caused global and U. S. oil prices to surge dramatically( For a more detailed discussion of the broader impacts of the Iran war, see our separate article in this issue.)
White House press secretary Karoline Leavitt described the waiver as“ another step to mitigate the short-term disruptions to the oil markets as the U. S. military continues meeting the objectives of Operation Epic Fury.”
Jones Act Waiver Under 46 U. S. C. § 501, the requirements of the Jones Act may be waived under certain limited circumstances.
There are two types of waivers— one that comes from the Secretary of Defense( now called the Secretary of War)(§ 501( a)) and one that comes from the head of a civilian agency(§ 501( b))— each of which have their own separate process and requirements.
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