Trump Extends Jones Act Waiver 90 Days, Allowing Foreign Ships to Carry Fuel Between U.S. Ports

The Jones Act, a federal maritime law, requires that goods transported between U.S. ports be carried by ships that are U.S.-built, U.S.-flagged, and U.S.-crewed. President Trump first waived the law on March 18, citing the need to maintain energy supply as conflict in the Middle East disrupted global oil markets. The 90-day extension, announced Friday, was described by White House spokeswoman Taylor Rogers as providing "certainty and stability for the U.S. and global economies."

The Washington Examiner reported that the war in Iran, which began in late February, has effectively closed the Strait of Hormuz — a trading route through which nearly 20 million barrels of crude oil pass daily, or roughly one-fifth of global supply. The Examiner also reported that Phillips 66 was the first refiner to use the waiver, loading crude oil in early April at a terminal in Beaumont, Texas, aboard a Malta-flagged tanker bound for a Pennsylvania refinery operated by Monroe Energy, a Delta Air Lines subsidiary. The administration has pursued several parallel measures, including releasing stocks from the Strategic Petroleum Reserve, issuing an emergency waiver for summer fuel blends, and invoking the Defense Production Act to boost domestic energy production.

The New York Times noted that the waiver could help move oil, gasoline, and diesel to states like California that lack access to major pipelines, and cited a Maritime Administration list showing foreign ships have visited California ports since the waiver took effect. The Times also reported that some economists say the impact on gasoline prices for consumers may be only negligible.