Regulatory Alert

Trump Administration Issues Temporary Jones Act Waiver to Stabilize Fuel Markets

Wednesday, March 18, 2026 – Today, President Trump announced a temporary 60-day waiver of the Merchant Marine Act of 1920 (Jones Act), allowing non-U.S. flagged vessels to transport certain goods between U.S. ports. The waiver is intended to facilitate the movement of critical energy commodities and related materials—including crude oil, gasoline, diesel fuel, distillates, gasoline blendstocks, liquified natural gas, and fertilizer inputs—during a period of heightened volatility in global energy markets.

For fuel marketers and distributors, the waiver could provide short-term logistical flexibility by expanding the pool of vessels available to move petroleum products domestically, particularly along key supply corridors such as the U.S. Gulf Coast to East Coast routes. The Administration indicated the measure is designed to help ensure adequate supply to U.S. military installations and airfields, while also supporting the broader distribution of energy products across domestic markets.

The announcement comes alongside a coordinated international effort to increase global oil supply. According to the Administration, member countries of the International Energy Agency have agreed to release 400 million barrels of crude oil and refined products from strategic reserves. As part of this effort, the United States will release 172 million barrels of crude oil from the Strategic Petroleum Reserve, with deliveries expected to begin next week and continue over approximately four months.

These actions are intended to ease upward pressure on fuel prices and maintain stability in petroleum supply chains, particularly as geopolitical developments continue to affect global energy flows.

Additional steps announced by the Administration focus on protecting international shipping routes critical to fuel trade. The Administration has directed the U.S. International Development Finance Corporation to implement a $20 billion maritime reinsurance initiative aimed at supporting tanker traffic through the Strait of Hormuz. The program is intended to restore confidence among shipping operators and ensure continued movement of liquid energy commodities from the Persian Gulf.

The Administration indicated that additional implementation details related to the Jones Act waiver will be issued soon by U.S. Customs and Border Protection. EMA will continue to monitor these developments and provide updates as further guidance becomes available.