Trump extends Jones Act waiver, tying the move to Iran war disruptions
The Trump administration said Friday it would extend a waiver on the Jones Act for another 90 days, pointing to the war in Iran and its knock-on effects for energy markets and global supply chains. The announcement came as the administration has been looking for ways to counter disruptions and rising oil prices tied to the conflict.
Under the Jones Act, the U.S. generally requires that goods hauled between American ports move on U.S.-flagged vessels, with U.S.-built ships, U.S. ownership, and U.S. crews. The waiver is meant to loosen those requirements, which have long been debated for both national-security rationales and economic impacts on the cost of shipping within the United States.
In a post on social media site X, White House assistant press secretary Taylor Rogers said President Donald Trump issued a 90-day extension to the Jones Act waiver. The administration also said the decision reflected “new data compiled since the initial waiver was issued” that showed “significantly more supply was able to reach U.S. ports faster.”
The administration’s justification centers on shipping constraints that have intensified since the Iran war began. The impact has reached far beyond the Middle East, with disruptions in tanker movement connected to the Strait of Hormuz leaving some deliveries stalled and contributing to higher prices for businesses and consumers worldwide.
Rogers’ statement said the new data indicated improved delivery speed under the initial waiver, despite ongoing market volatility. The article also notes that oil prices had spiked and swung rapidly since the start of the Iran war, and that U.S. drivers saw gasoline prices rise sharply as the conflict disrupted energy flows.
In the policy debate over the Jones Act waiver, the Center for American Progress said in March that waiving the law would decrease East Coast gas prices by about 3 cents, while potentially raising costs on the Gulf Coast. The think tank also argued that the move could sideline U.S. shipbuilders and workers and allow the oil industry to keep benefiting from higher prices while reducing transport costs.
The discussion of the waiver’s likely consumer impact also reflects broader constraints on how fuel markets work, including how long it takes for increased supply to filter through refineries and into retail pricing. Even if the waiver can help some shipments move faster, analysts said the effect could be temporary, with gasoline relief dependent on whether the conflict’s disruptions ease.
The administration’s waiver decision comes alongside other steps aimed at increasing energy supply. In March, the Treasury Department eased sanctions to allow U.S. companies to do business with Venezuela’s state-owned oil and gas company, and the administration announced it would temporarily free up Russian oil from U.S. sanctions as well.
The International Energy Agency also pledged to release 400 million barrels of oil available from member nations’ stockpiles, and Trump confirmed the U.S. would pull 172 million barrels from its Strategic Petroleum Reserve over 120 days as part of that effort. The availability of emergency supply does not change the fact that oil and fuel pricing react to global conditions, including where refineries are set up to process different types of crude.