Pressure at the pump: Trump's efforts to lower petrol costs could rest on century-old law

A century-old maritime law, known as the Jones Act, is drawing renewed attention as President Donald Trump attempts to address the surge in gasoline prices caused by supply disruptions stemming from the Iran conflict. Despite the United States being the world's top crude oil producer, American motorists continue to bear the brunt of the impact, with the average price now standing at $4.06 per gallon, up from $3.17 at this time last year, according to the automotive organization AAA.

The soaring fuel costs could have far-reaching consequences for consumers and businesses alike, potentially leading to increased consumer spending cuts and reduced hiring. Meanwhile, the strait of Hormuz, a vital energy artery responsible for one-fifth of the world's oil supplies, remains blocked due to the absence of a lasting deal between the US and Iran.

In light of the ongoing impasse, Energy Secretary Chris Wright expects the administration to extend a waiver on the Jones Act, a provision that has been utilized nearly 200 times since its inception in 1920. The act mandates that ships transporting goods between US ports be owned by American entities, manned by US citizens, and flying the US flag.

The waiver, initially granted for 60 days in March, has been extended multiple times, most recently until August 16. However, there is a growing controversy surrounding the extension, with some Republican lawmakers and Democratic leaders expressing concerns about its potential negative impact on the US shipbuilding industry and the waiver's limited effectiveness in alleviating gas prices.

Former New York City mayor Michael Bloomberg has even suggested that the Iran War should mark the end of the Jones Act, claiming that the waiver has been beneficial for Americans without causing harm to the industry. The debate over the Jones Act's future takes on increased significance as the election season approaches, with voters expressing dissatisfaction with Trump's handling of the war and a significant portion of respondents attributing rising petrol prices to the conflict.

The administration is currently releasing 172 million barrels of crude oil from its Strategic Petroleum Reserve and joining other International Energy Agency members in releasing 400 million barrels to help stabilize prices. However, the US crude oil stockpile is at its lowest level since 1983, as reported by the Energy Information Administration.

Trump has also criticized oil majors, accusing them of "gouging consumers" and ordering the Justice Department to investigate the companies for not reducing prices.