Transportation costs have increased by more than 10% in the past month due to the war between the United States and Israel against Iran.
Published April 13, 2026
Shipping and oil costs continue to rise a month after President Donald Trump announced an exemption from the Jones Act, a maritime law that prohibits foreign-flagged vessels from transporting goods between U.S. ports.
The 60-day waiver took effect on March 18 as the U.S. and Israel’s war against Iran blocked the movement of energy supplies through the Strait of Hormuz, a strategic waterway that carries about 20 percent of the world’s oil and liquefied natural gas supplies.
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Under the Jones Act, goods transported between U.S. ports must be carried in U.S.-built, U.S.-flagged, and mostly U.S.-owned vessels, which limits the number of tankers available for domestic transportation.
The Trump administration argued that the temporary exemption from the law would reduce energy costs. The exemption has had little impact on oil prices as the expiration date approaches on the 30th.
“We estimate that it could go up by about 3 cents on the East Coast and potentially up on the Gulf Coast, but these changes are so small that they are overshadowed by the rise in oil prices, and oil prices continue to rise,” Usha Haley, a business professor at Wichita State University, told Al Jazeera.
“This is a small drop compared to the rise in crude oil prices.”
Oil prices continue to rise as the conflict continues, disrupting shipping in the Strait of Hormuz.
Brent crude oil futures rose 4% on the day to hit $98.91 after hitting $101.03 earlier in the day following the U.S. blockade of Iranian ports. US West Texas Intermediate (WTI) crude oil rose $2.53, or 2.6%, to $99.10.
The U.S. Navy on Monday blocked Iranian ports to prevent oil from flowing into and out of Iran after talks between U.S. and Iranian negotiators failed to reach an agreement.
The burden is also hitting consumers at gas pumps in the United States. The American Automobile Association reports the average price of gasoline is $4.125 per gallon (3.78 liters), compared to $3.63 at this time last month.
Meanwhile, shippers are rerouting their routes, with more than 34,000 ships diverted from the Channel in the past month.
The Container Freight Index, a benchmark for shipping container costs, has risen more than 10% in the last month and is up more than 35% compared to this time last year, amid pressure on the market to find alternative shipping strategies.
In March, Maersk and Hapag-Lloyd suspended shipping through the Straits, the waterway connecting the Gulf of Oman and the Gulf of Oman.
And in March, within days of the start of the U.S.-Israel war against Iran, several major marine insurers, including Norwegian insurers Garud and Skuld and Britain’s North Standard, canceled war risk coverage for ships plying the waterway, discouraging shipowners from transiting the Gulf.
Although marine insurance has since become available at 10 times the price before the war with Iran, experts say fuel prices will only normalize once traffic in the strait returns to pre-war levels.
