The "boomerang" attack on Iran has flown to the United States! The White House plans to waive the Jones Act to alleviate oil price concerns.
2026-03-13 09:53:00
White House spokesman Levitt said the Trump administration is considering a temporary exemption from the nearly century-old Jones Act to allow foreign ships to transport fuel and agricultural products between U.S. ports, in order to ensure the free flow of energy and essential goods.
The bill requires that cargo transport between U.S. ports must use vessels manufactured in the United States, owned in the United States, and staffed by U.S. personnel. The White House's move aims to address energy supply shortages and soaring transportation costs caused by the disruption of the Strait of Hormuz due to the conflict with Iran. A 30-day exemption could be announced as early as Thursday (March 12th) local time, but it has not yet been finalized.
The proposed exemption would last for 30 days, authorizing foreign vessels to transport energy products such as fuel oil, gasoline, and diesel, as well as certain agricultural products, between ports in the United States.
The White House emphasized that this is a "temporary, targeted" measure, limited to goods currently stranded at sea and urgently needed for transport, and does not change the long-term framework of the Jones Act.
If the exemption is implemented, it will reduce transportation costs in energy-dependent regions such as the West Coast and the Northeast, speed up delivery, and alleviate local supply shortages.
Data from the American Automobile Association (AAA) shows that the average retail gasoline price across the United States rose to $3.60 per gallon on Thursday, reaching its highest level since May 2024; diesel prices once reached $4.89 per gallon, the highest level since December 2022.
The disruption of shipping through the Strait of Hormuz has led to a global energy supply shortage, causing a surge in refinery costs that are directly passed on to end-user prices. High oil prices pose a significant political risk to the Trump administration and the Republican Party, especially ahead of the midterm elections, as gasoline prices exceeding $4 are generally considered a White House "red line."
(US fuel oil daily chart, source: FX678)
Seven major U.S. maritime unions have jointly and strongly opposed the exemption of the Jones Act, arguing that it would benefit foreign operators who evade U.S. taxes and rely on low-wage labor, and harm U.S. seafarer employment, national security, and economic interests.
The union argues that the Jones Act is a core law protecting the domestic shipping industry and maritime workforce, and that a temporary exemption could become a permanent loophole, weakening U.S. shipbuilding and shipping capabilities. The union is urging Congress and the White House to reject the exemption proposal.
On March 9, the American Farm Bureau Federation sent a letter to Trump requesting a temporary exemption from the Jones Act to improve domestic transportation capacity.
The letter warned that a disruption to the Strait of Hormuz would cause fertilizer prices to soar (the Middle East is a major global producer of fertilizer raw materials), severely impacting U.S. agricultural production and food security.
The Farm Bureau believes that the exemptions would reduce inland transportation costs and expedite fertilizer delivery, making them a necessary measure to protect agriculture in the current emergency. Historically, the United States has only issued similar exemptions during major supply disruptions, such as after the 2017 hurricane.
Fuel price tracking agencies point out that the exemptions may alleviate gasoline price increases in import-dependent regions such as the West Coast and the Northeast, but overall price trends will still be dominated by the situation in the Middle East .
As long as Iran continues to attack oil tankers in the Strait of Hormuz or maintain its threats, governments will find it difficult to take effective measures to stabilize oil prices. Exemptions only optimize short-term transportation costs and cannot fundamentally address the global supply gap.
The market is focused on Iran's response, the White House's final decision, and the actual implementation effect of the G7/IEA's release of reserves.
The Trump administration is considering a temporary waiver of the century-old Jones Act, allowing foreign ships to transport fuel and agricultural products between U.S. ports. The waiver could be announced as early as Thursday local time for 30 days, aimed at easing energy supply shortages and soaring transportation costs caused by the conflict with Iran.
The seven major maritime unions strongly opposed the exemption, arguing it would harm American seafarer jobs and national security; however, the American Farm Bureau Federation sent a letter in support, warning that soaring fertilizer prices threatened agriculture. The exemption's effect may be limited, only alleviating localized transportation costs and failing to alter the oil price trend driven by the Middle East situation.
As long as the Hormuz threat persists, global energy market panic and inflationary pressures will be difficult to alleviate substantially. The White House faces multiple challenges, including union opposition, agricultural demands, and pressure from the midterm elections, making its final decision highly anticipated.
At 9:52 AM Beijing time, US fuel oil futures were quoted at $3.65 per gallon.
The bill requires that cargo transport between U.S. ports must use vessels manufactured in the United States, owned in the United States, and staffed by U.S. personnel. The White House's move aims to address energy supply shortages and soaring transportation costs caused by the disruption of the Strait of Hormuz due to the conflict with Iran. A 30-day exemption could be announced as early as Thursday (March 12th) local time, but it has not yet been finalized.
A 30-day exemption, to be announced as early as Thursday local time, would allow foreign ships to transport fuel between U.S. ports.
The proposed exemption would last for 30 days, authorizing foreign vessels to transport energy products such as fuel oil, gasoline, and diesel, as well as certain agricultural products, between ports in the United States.
The White House emphasized that this is a "temporary, targeted" measure, limited to goods currently stranded at sea and urgently needed for transport, and does not change the long-term framework of the Jones Act.
If the exemption is implemented, it will reduce transportation costs in energy-dependent regions such as the West Coast and the Northeast, speed up delivery, and alleviate local supply shortages.
The average price of gasoline across the United States is nearly $3.60, while diesel prices once reached $4.89, a recent high.
Data from the American Automobile Association (AAA) shows that the average retail gasoline price across the United States rose to $3.60 per gallon on Thursday, reaching its highest level since May 2024; diesel prices once reached $4.89 per gallon, the highest level since December 2022.
The disruption of shipping through the Strait of Hormuz has led to a global energy supply shortage, causing a surge in refinery costs that are directly passed on to end-user prices. High oil prices pose a significant political risk to the Trump administration and the Republican Party, especially ahead of the midterm elections, as gasoline prices exceeding $4 are generally considered a White House "red line."
(US fuel oil daily chart, source: FX678)
The seven major maritime unions strongly opposed the move, claiming that foreign ships' low wages and tax avoidance harmed U.S. interests.
Seven major U.S. maritime unions have jointly and strongly opposed the exemption of the Jones Act, arguing that it would benefit foreign operators who evade U.S. taxes and rely on low-wage labor, and harm U.S. seafarer employment, national security, and economic interests.
The union argues that the Jones Act is a core law protecting the domestic shipping industry and maritime workforce, and that a temporary exemption could become a permanent loophole, weakening U.S. shipbuilding and shipping capabilities. The union is urging Congress and the White House to reject the exemption proposal.
The American Farm Bureau Federation sent a letter to Trump requesting an exemption to address soaring fertilizer prices.
On March 9, the American Farm Bureau Federation sent a letter to Trump requesting a temporary exemption from the Jones Act to improve domestic transportation capacity.
The letter warned that a disruption to the Strait of Hormuz would cause fertilizer prices to soar (the Middle East is a major global producer of fertilizer raw materials), severely impacting U.S. agricultural production and food security.
The Farm Bureau believes that the exemptions would reduce inland transportation costs and expedite fertilizer delivery, making them a necessary measure to protect agriculture in the current emergency. Historically, the United States has only issued similar exemptions during major supply disruptions, such as after the 2017 hurricane.
The effect of exemptions may be limited; the situation in the Middle East will dominate price trends.
Fuel price tracking agencies point out that the exemptions may alleviate gasoline price increases in import-dependent regions such as the West Coast and the Northeast, but overall price trends will still be dominated by the situation in the Middle East .
As long as Iran continues to attack oil tankers in the Strait of Hormuz or maintain its threats, governments will find it difficult to take effective measures to stabilize oil prices. Exemptions only optimize short-term transportation costs and cannot fundamentally address the global supply gap.
The market is focused on Iran's response, the White House's final decision, and the actual implementation effect of the G7/IEA's release of reserves.
Editor's Summary
The Trump administration is considering a temporary waiver of the century-old Jones Act, allowing foreign ships to transport fuel and agricultural products between U.S. ports. The waiver could be announced as early as Thursday local time for 30 days, aimed at easing energy supply shortages and soaring transportation costs caused by the conflict with Iran.
The seven major maritime unions strongly opposed the exemption, arguing it would harm American seafarer jobs and national security; however, the American Farm Bureau Federation sent a letter in support, warning that soaring fertilizer prices threatened agriculture. The exemption's effect may be limited, only alleviating localized transportation costs and failing to alter the oil price trend driven by the Middle East situation.
As long as the Hormuz threat persists, global energy market panic and inflationary pressures will be difficult to alleviate substantially. The White House faces multiple challenges, including union opposition, agricultural demands, and pressure from the midterm elections, making its final decision highly anticipated.
At 9:52 AM Beijing time, US fuel oil futures were quoted at $3.65 per gallon.
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