The Trump administration is considering waiving the Jones Act, a century-old shipping law, as crude oil prices surge toward $100 per barrel amid escalating tensions with Iran, the White House confirmed.

The Jones Act, formally known as the Merchant Marine Act of 1920, requires goods shipped between U.S. ports to be transported on American-built, American-owned, and American-crewed vessels. The law has long been criticized by economists and some policymakers as contributing to higher shipping costs and fuel prices.

Experts suggest that temporarily suspending the law could help reduce fuel costs by allowing foreign-flagged vessels to transport oil and refined products between U.S. ports more efficiently and at lower rates. The restriction currently forces domestic shipments to use more expensive American vessels.

Crude oil prices have climbed significantly in recent weeks as tensions with Iran have intensified, raising concerns about potential supply disruptions and their impact on American consumers. The price surge has renewed focus on regulatory barriers that may contribute to higher energy costs.

The Jones Act has been temporarily waived during previous emergencies, including after Hurricane Katrina in 2005 and Hurricane Maria in 2017. Such waivers typically require a determination that suspension would be in the national defense interest.

Any decision to waive the Jones Act would likely face opposition from domestic shipping interests and maritime unions, who argue the law protects American jobs and maintains a crucial domestic shipping capability for national security purposes.