Waiving the Jones Act Boosts U.S. Energy Shipments Amid Iran Conflict
Temporary exemptions from the century-old Jones Act, granted during the war with Iran, have dramatically increased domestic propane and fuel shipments, especially to Puerto Rico.
Amid the ongoing conflict with Iran, the U.S. government temporarily suspended enforcement of the Jones Act, a law that mandates American-built, American-crewed ships for domestic cargo. Analysts note that this policy shift has led to a surge in energy shipments, with Puerto Rico alone importing over 800,000 barrels of propane from the mainland since March—exceeding the cumulative amount shipped in the prior two decades.
Maritime Administration records reveal more than 210 voyages that would have been prohibited without the waivers, enabling fuel to flow from Gulf Coast refineries to New England and allowing California to source gasoline from Texas and Alaska instead of distant locations like the Bahamas. The waivers, renewed in May and extended in August for 90 days, are cited by free-trade advocates as evidence that the Jones Act inflates costs. Critics argue the temporary relief highlights the law's broader economic distortion, prompting calls for its permanent repeal.
Why it matters
The waivers show how a protectionist law can raise domestic energy costs and how its suspension can quickly lower prices and improve supply.
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