President Donald Trump has temporarily waived a century-old shipping law to allow oil and other resources to flow to the United States, a White House official told FOX Business on Wednesday.
Trump issued a 60-day waiver of the Jones Act, a mandate that only U.S. ships carry cargo between U.S. ports and stipulates that at least 75% of the crew members are American citizens. Additionally, it demands these ships are built in the U.S. and owned by U.S. citizens.
"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 on X. "This action will allow vital resources like oil, natural gas, fertilizer, and coal to flow freely to U.S. ports for sixty days, and the Administration remains committed to continuing to strengthen our critical supply chains."
The war with Iran has effectively closed the Strait of Hormuz, a vital oil chokepoint that sees ships carry about a fifth of the world’s oil out of the Gulf region. Iran's stranglehold and threats to ships in the narrow passageway has sent oil prices above $100 per barrel.
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While proponents of the Jones Act claim it beefs up national security, prevents foreign countries from accessing the U.S., and protects the American shipbuilding sector, critics argue that the 1920s law is outdated and hampers competitiveness in the industry while driving up shipbuilding costs.
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Previous instances in which the Jones Act has been temporarily waived include responses to major hurricanes, such as Hurricane Katrina in 2005 and Hurricanes Harvey and Irma in 2017.
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This is a developing news story; check back for updates.