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Trump Administration Extends Shipping Waiver to Maintain Oil Flow Amid Iran Conflict

Washington: US President Donald Trump's administration extended a limited waiver of the Jones Act for another 90 days on Monday to support domestic fuel supplies amid disruptions caused by the Iran war, according to a White House spokesperson. The extension allows foreign-flagged vessels to transport certain energy resources between US ports, easing restrictions imposed under the century-old shipping law.

According to Anadolu Agency, unlike the previous blanket waiver, the new extension will be applied on a voyage-by-voyage basis. The Pentagon will consult the US Maritime Administration to determine whether individual shipments qualify, as stated by White House spokeswoman Taylor Rogers. She indicated that the waiver was extended to ensure that the US military and key industries maintain uninterrupted access to critical resources.

Rogers highlighted that data shows the waiver has driven a significant increase in domestic deliveries of essential products such as gasoline, diesel, and jet fuel. This latest extension is expected to remain in effect until mid-November, following an initial 60-day waiver issued by Trump on March 17, which was then extended for another 90 days in May.

The administration has narrowed the scope of the latest measure in response to concerns from the US maritime industry that a broader waiver could undermine domestic shipbuilders and shipping companies. The Jones Act, which is part of the Merchant Marine Act of 1920, generally requires goods transported between US ports to be carried aboard vessels built, owned, and operated by Americans.

Since the initial waiver was introduced, about 210 voyages that would otherwise have been prohibited have been completed, according to US Maritime Administration data. Most of these vessels transported gasoline or crude oil. The extension comes as restricted traffic through the Strait of Hormuz continues to disrupt global energy supplies and exert upward pressure on oil prices.

Additionally, US Strategic Petroleum Reserve holdings fell by approximately 6.1 million barrels last week to 298.7 million barrels, marking their lowest level since 1983.