U.S. moves to curb oil prices with Jones Act waiver, new steps within 48 hours

[The Financial News] President Donald John Trump has temporarily waived the Jones Act for 60 days to curb surging energy prices triggered by the Middle East war. At the same time, Vice President J. D. Vance stated that he would unveil "additional response measures within 24 to 48 hours," signaling the start of an emergency push by Washington to contain war-driven spikes in oil prices.
The White House said in a statement on the 18th (local time) that the move is intended to ease short-term disruptions in the oil market caused by the U.S.-Iran military operation "Operation Epic Fury." For the next 60 days, foreign-flagged vessels will be allowed to transport crude oil, liquefied natural gas (LNG), coal, fertilizer, and other energy-related cargo between U.S. ports.
Enacted in 1920, the Jones Act restricts cargo shipments between U.S. ports to vessels that are U.S.-flagged and U.S.-built. It is designed to protect the domestic shipbuilding and maritime industries, but critics have long argued that it drives up logistics costs and makes supply chains more rigid. It is also frequently cited as one of the reasons for high prices in places such as Alaska and Hawaii.
The latest decision comes in response to a sharp rise in global oil prices as tensions in the Middle East escalated following joint U.S.-Israeli military strikes on Iran. According to the American Automobile Association (AAA), gasoline prices have jumped more than 27% since the war began, reaching an average of $3.84 per gallon, while diesel has climbed above $5. Rising energy costs are putting broad pressure on both household budgets and corporate expenses.
Vance cautioned that "the next few weeks will be difficult, but this is a temporary phenomenon," and signaled further action. He noted that measures to address rising oil prices would be announced within 24 to 48 hours. Vance and U.S. Secretary of Energy Chris Wright are scheduled to meet on the 19th with the American Petroleum Institute (API), the largest U.S. oil trade group, to discuss follow-up responses.
However, market observers say the Jones Act waiver may have only a limited impact on actually lowering prices. Some analyses suggest that the effect on gasoline prices could be less than 2 cents per gallon. With structural upward pressure on oil prices still in place, there is concern that the move could end up as a short-term symbolic gesture.
In the end, the waiver is largely seen as an initial policy card aimed at cushioning the energy shock unleashed by the war. The strength and scope of the additional measures to be announced will likely determine whether oil prices stabilize, how inflation trends evolve, and even the broader political fallout.

km@fnnews.com Kim Kyung-min Reporter