Trump Waives Merchant Marine Act of 1920 Amid Iran Conflict

The Donald Trump administration announced a 60-day waiver of the Merchant Marine Act of 1920, a century-old shipping law, to combat rising fuel and fertilizer prices and supply disruptions. This decision allows foreign-flagged vessels to transport vital resources like oil, natural gas, fertilizer, and coal between U.S. ports, which typically must be carried on U.S.-built, U.S.-flagged, and mostly U.S.-owned ships. The waiver is a response to the conflict in Iran, which has effectively closed the Strait of Hormuz, disrupting global oil and liquefied natural gas supplies and causing a surge in U.S. energy prices. While analysts are skeptical about a significant drop in pump prices, the move is seen as a step to mitigate short-term disruptions and strengthen critical supply chains. The American Maritime Partnership expressed concerns about the waiver's impact on U.S. workers and companies, while groups like the American Fuel and Petrochemical Manufacturers and the American Farm Bureau Federation welcomed the flexibility it provides. This action is part of broader emergency measures, including easing sanctions on Venezuela to allow Petróleos de Venezuela===PDVSA S.A to sell oil to U.S. companies.