Trump Nukes Act In Desperate Attempt To Ease Gas Prices

Trump’s rare Jones Act waiver could slash your gas prices by pennies—but will it tame the Iran war’s fuel crisis?

Story Snapshot

Trump administration considers 30-60 day Jones Act suspension to unleash foreign tankers on U.S. routes amid Iran conflict.
Fuel prices spiked to $3.60/gallon gas and $4.89/gallon diesel after U.S.-Israel strikes on February 28, 2026.
Only 54 U.S.-compliant tankers exist versus 7,500 global options, bottlenecking energy distribution.
Experts predict modest relief: 3-10 cents/gallon drop, aiding consumers without gutting domestic shipbuilding.
Framed as national defense, paired with massive Strategic Petroleum Reserve release.

Jones Act Origins and Strict Requirements

The Jones Act, enacted in 1920, mandates U.S.-built, U.S.-flagged, and U.S.-owned vessels transport all goods between American ports. Congress designed this law to bolster national security through a robust domestic shipbuilding industry and merchant fleet. Foreign ships face total prohibition, creating a protected market for American operators. This century-old rule now collides with modern energy crises, exposing its rigid constraints on shipping flexibility.

Iran Conflict Ignites Fuel Price Surge

U.S. and Israeli forces struck Iran on February 28, 2026, prompting Iran to choke the Strait of Hormuz, which handles one-fifth of global oil. Brent crude rocketed 8% past $100 per barrel from $60 in January. West Texas Intermediate hit $95.02, up 9%. Gasoline reached $3.60 per gallon, highest since May 2024; diesel soared to $4.89, peaking since 2022. These shocks demand urgent supply chain responses.

White House Signals Temporary Waiver

On March 12-13, 2026, spokeswoman Karoline Leavitt announced the White House weighs a limited Jones Act waiver for national defense. Foreign tankers could then shuttle oil, gasoline, diesel, LNG, and fertilizer between U.S. ports. Duration targets 30 days, possibly extending to 60. Leavitt stressed no final decision, but paired it with releasing 172 million Strategic Petroleum Reserve barrels—the largest IEA emergency release ever. Officials call price spikes a short-term pain for long-term geopolitical wins.

Homeland Security and Defense Secretaries hold waiver authority under emergency provisions. Past uses include Hurricane Harvey, Maria, and Sandy in 2017 and 2012, plus pipeline failures—always temporary tools for crises.

President Trump waives Jones Act for 60 days in effort to ease energy prices. https://t.co/FkRisX7GQH

— CBS News (@CBSNews) March 18, 2026

Stakeholders Clash Over Waiver Impacts

Trump administration prioritizes consumer relief against rising costs. Energy firms and refiners back expanded shipping to cut transport expenses, especially for Northeast and West Coast markets. Consumers stand to gain from lower pump prices. U.S. shipbuilders and domestic carriers oppose, fearing foreign competition erodes their Jones Act protections. Foreign shippers cheer access to lucrative routes. Congress holds oversight, though sources lack specific reactions.

Expert Projections on Price Relief

Analysts forecast limited but real benefits. Center for American Progress sees just 3 cents per gallon gasoline drop. Others predict 5-10 cents slowdown in rises. One study claims East Coast savings: $0.63/gallon gasoline, $0.82 diesel, $0.80 jet fuel per barrel equivalent. Cato’s Colin Grabow blasts Jones Act energy curbs as overly restrictive. Peter Harrell, ex-Biden economist, deems it a small useful price tweak with negligible shipbuilding harm. Waiver expands capacity yet won’t fully counter global oil shock.