The Trump administration on Wednesday announced a 60-day waiver of the Jones Act shipping law, temporarily allowing foreign-flagged vessels to move fuel, fertilizer and other goods between U.S. ports as soaring energy and agricultural prices strain supply chains amid the ongoing conflict in and around Iran.

White House spokeswoman Karoline Leavitt said the waiver represents "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."

The waiver, a rare exception to the century-old law, underscores the administration’s urgent response to a crisis that has sent gasoline prices sharply higher and disrupted critical fertilizer supplies for U.S. farmers.

Relaxing the Jones Act allows coastal refiners and fuel distributors to access a larger pool of ships, including foreign-flagged vessels, to move gasoline, diesel and other petroleum products between ports.

While analysts caution the move is unlikely to significantly lower pump prices, it signals a pragmatic shift by Trump, who has long championed U.S. shipbuilding and maritime labor unions, key supporters of the Jones Act.

High energy prices carry significant political risks for Trump and fellow Republicans, who have long argued that their policies would keep fuel affordable for American consumers.

U.S. gasoline prices have surged since the start of U.S. and Israeli attacks on Iran on February 28 as the conflict effectively closes the Strait of Hormuz, the outlet for around a fifth of global oil and liquefied natural gas supplies.

The conflict has also disrupted fertilizer supplies, which is a major concern for U.S. agricultural interests.

Under the Jones Act, goods shipped between U.S. ports must be carried on vessels that are U.S.-built, U.S.-flagged and mostly U.S.-owned.

The requirement sharply limits the number of tankers available for domestic shipments, but is supported by maritime industry unions.

The administration’s waiver is one of several emergency measures being employed to counter the economic fallout from the Iran conflict, including releases from the Strategic Petroleum Reserve and adjustments to sanctions policy, as Washington seeks to stabilize markets ahead of domestic political pressures.

(Reuters)