U.S. Waives Jones Act After Iran Gas Field Attack
Shortly after Israeli fighter jets struck Iran's upstream oil and natural gas production assets for the first time in Operation Epic Fury, sending WTI futures to $98.5/bbl, the Trump administration appears to have pulled another emergency lever from JPMorgan's six-option playbook we recently outlined: a 60-day Jones Act waiver that allows foreign-flagged ships to transport oil, gas, refined products, fertilizer, and related energy cargoes between US ports to boost domestic energy flows and ensure shipping capacity does not become a bottleneck.
Bloomberg reports that President Trump this morning authorized foreign-flagged tankers to transport crude and refined products, including gasoline and diesel, between US ports in a bid to move more Gulf Coast crude supplies to East Coast refineries, stabilize fuel availability, and keep shipping costs low.
"President Trump's decision to issue a 60-day Jones Act waiver is just another step to mitigate the short-term disruptions to the oil market as the U.S. military continues meeting the objectives of Operation Epic Fury," White House Press Secretary Karoline Leavitt said in a statement, quoted by Bloomberg.
Leavitt said, "The Administration remains committed to continuing to strengthen our critical supply chains."
The US government can temporarily waive the Jones Act, but it cannot permanently lift it without Congress. The law requires that goods transported between US ports be carried on ships that are US-built, US-flagged, and US-crewed. However, under the Merchant Marine Act of 1920, the administration can grant temporary waivers if it determines they are necessary for national defense or in response to emergencies, typically through coordination between the US Department of Homeland Security and the US Department of War.
Such waivers have been issued several times, for example, after major hurricanes, to allow foreign tankers to move fuel between US ports. Combining a release from the SPR with a temporary waiver of the Jones Act would make the policy more effective. Without a waiver, limited US-flagged tanker capacity could constrain how quickly SPR barrels reach key refining centers or deficit regions.
The US last issued a Jones Act waiver in October 2022 for a tanker bound for Puerto Rico to deliver supplies following Hurricane Fiona. The Biden administration temporarily eased the law in 2021 for refiner Valero Energy Corp. following a cyberattack on a major East Coast fuel pipeline.
Bloomberg's Javier Blas wrote on X, "The Jones Act should be rescinded for good."
He added, "But waiving it now for 60 days would have little impact in the global oil market. The move speaks more about panic than well-thought-out policy. Similar to the US gov providing war insurance to tankers, it doesn't solve the problem."
The Jones Act should be rescinded for good.
— Javier Blas (@JavierBlas) March 18, 2026
But waiving it now for 60 days would have little impact in the global oil market. The move speaks more about panic than well-thought-out policy. Similar to the US gov providing war insurance to tankers, it doesn't solve the problem.
Waiving the century-old maritime law is one of the six options JPMorgan's head of commodity research, Natasha Kaneva, laid out to clients last week that the Trump administration could employ to combat triple-digit WTI crude prices. The first item on the list, the "historic" emergency release of SPR barrels, has likely already begun.
As we've noted, the SPR release is unlikely to materially cap oil prices unless safe passage through the Strait of Hormuz is restored. Israel's strike on Iran's South Pars field (the world's largest) marks a clear escalation, crossing into upstream energy infrastructure and deepening the risk to physical supply. With Iranian state media now calling for an "all-out economic war," the South Pars attack may accelerate JPM's six-option price-containment playbook, which may only suggest the Trump administration is following.
