Trump Extends Jones Act Waiver for 90 Days to Secure Energy Supply Amid Iran Conflict

President Trump announced on Monday (the 10th) that the Jones Act waiver will be extended for another 90 days, allowing qualified foreign vessels to continue transporting energy products between U.S. ports. The decision aims to maintain fuel circulation and alleviate pressure on U.S. gasoline prices amid global supply disruptions caused by the ongoing conflict with Iran.

White House spokesperson Taylor Rogers stated that the waiver extension is intended to ensure that the U.S. military and critical industries can continue accessing essential resources.

She noted that current data shows the waiver has significantly increased the volume of gasoline, diesel, and aviation fuel transported within the United States, contributing to strengthening both the nation's economy and national security.

This marks the second time the Trump administration has extended the waiver. The latest measure is set to remain in effect until mid-November, overlapping with the U.S. midterm elections.

With shipping through the Strait of Hormuz still failing to return to normal, international oil prices have risen again, and U.S. oil inventories have dropped to multi-year lows. As a result, energy prices have become a key economic issue ahead of the election.

However, the Trump administration has not fully renewed the previous arrangement this time, instead narrowing the scope of application. According to White House officials, the waiver will now be limited to specific energy and critical goods, including gasoline, diesel, crude oil, petrochemical products, natural gas, and fertilizers.

Additionally, foreign vessels will no longer be automatically permitted for all qualifying routes. The U.S. Department of Defense must now consult with the Maritime Administration to determine whether a U.S.-flagged vessel compliant with the Jones Act is available before granting case-by-case approval for individual voyages.

This adjustment primarily responds to opposition from the U.S. domestic shipping industry. Industry players have expressed concerns that prolonged regulatory relaxation could weaken the competitiveness of U.S. ships, crews, and the shipbuilding sector. As a result, the White House has introduced two new restrictions—on cargo types and voyage approvals—while extending the waiver.

The Jones Act, enacted in 1920, stipulates that vessels transporting goods between U.S. ports must generally be built in the United States, owned by U.S. companies, and crewed by American sailors. Originally intended to bolster the domestic shipping industry after World War I, the law has been criticized for reducing market competition and increasing domestic transportation costs.

The Trump administration first announced a 60-day waiver on March 17—less than three weeks after the U.S. and Israel launched attacks on Iran—followed by a 90-day extension.

With Iran restricting vessel passage through the Strait of Hormuz, crude oil and other commodity supplies have been disrupted. The U.S. government hopes to enhance its domestic energy redistribution capacity by bringing in more foreign vessels.

Data from the U.S. Maritime Administration shows that since the waiver took effect, 210 voyages previously ineligible under the Jones Act have completed transport, mostly carrying gasoline and crude oil, with a total cargo volume approaching 55 million barrels.

The White House stated that the regulatory relaxation has increased the volume of certain key goods transported between U.S. ports by up to 50%.

The American Petroleum Institute has also expressed support for the waiver extension, stating it helps deliver fuel to high-demand regions, strengthens energy supply security, and reduces the risk of unnecessary price volatility for consumers.

The current average U.S. gasoline price is approximately $4.01 per gallon, about 87 cents higher than the same period last year.

Past studies suggest the Jones Act waiver may have a relatively limited impact on gasoline prices. In 2022, JPMorgan estimated that relaxing related shipping restrictions could reduce gasoline prices on the U.S. East Coast by about 10 cents per gallon.