Source link : https://las-vegas-news.com/jones-act-under-scrutiny-as-iran-tensions-drive-up-u-s-fuel-costs/
A Relic from 1920 Amplifies Today’s Crisis (Image Credits: Unsplash)
Escalating conflict with Iran has jolted energy markets, yet a century-old U.S. shipping regulation compounds the pain at the pump for everyday Americans.[1]
A Relic from 1920 Amplifies Today’s Crisis
Oil prices spiked to more than $120 a barrel on Monday before easing somewhat by Wednesday.[1] Disruptions in the Strait of Hormuz, stemming from U.S. military actions against Iran, fueled the volatility. Gasoline prices stayed high nationwide. Such swings strain household budgets and ripple through the economy.
The Jones Act, enacted in 1920, mandates that goods shipped between American ports travel on U.S.-built, owned, flagged, and crewed vessels. This requirement slashes available shipping options and inflates costs. Proponents once argued it bolstered domestic shipbuilding and mariner readiness for emergencies. Yet the fleet of qualifying ocean-going ships dwindled from 193 to just 92 in recent decades, according to the Cato Institute.[1]
Domestic Energy Trapped by Outdated Rules
Abundant U.S. production meets national needs, but global markets transmit price pressures. The United States generates ample oil and natural gas domestically. Still, the Jones Act hinders efficient distribution. Oil extracted in Alaska faces steep transport costs to the mainland due to limited compliant vessels. Hawaii, for example, sources nearly all its oil from abroad because Jones Act shipping proves too expensive.
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Author : Matthias Binder
Publish date : 2026-03-12 18:56:00
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