The Trump administration narrowed and extended its Jones Act waiver for another 90 days on Monday, keeping fuel moving to U.S. ports as the Iran war disrupts oil markets. The new terms limit the exemption to vessels hauling energy cargo and require Pentagon sign-off case by case, while oil prices resume their climb and U.S. petroleum reserves sit at their lowest level in decades.
President Donald Trump's administration extended its waiver of the Jones Act for another 90 days on Monday, even as it narrowed the exemption to fewer shipping restrictions. The move is Trump's second extension of the waiver and lands just months before the U.S. midterm elections.
Waiver narrowed to energy shipments only
The latest 90-day extension applies only to vessels hauling certain energy resources, a White House official told CNBC, after the U.S. maritime industry raised concerns about the broader exemption. As a result, the Pentagon must now consult with the Maritime Administration to determine whether the waiver applies to each individual shipping voyage.
Oil markets tighten as Hormuz talks stall
Traffic through the Strait of Hormuz remains at a trickle after the administration's latest signals of a deal to reopen the waterway failed to materialize. Since then, oil prices have resumed their climb. Meanwhile, U.S. petroleum reserves have fallen to their lowest level in decades.
A waiver stretched across three extensions
Trump issued the first, 60-day waiver on March 17, less than three weeks after the U.S. and Israel opened the war with strikes on Iran. His administration then extended it in mid-May for another 90 days. The newest extension should run until mid-November, past the midterms.
Over 200 voyages completed under the exemption
Since Trump first waived the 1920 law, 210 voyages have been completed that otherwise would have been unlawful, according to Maritime Administration data. Most of those vessels hauled gasoline and crude oil, and the Cato Institute calculates that nearly 55 million barrels of cargo have moved under the waivers in total.
White House spokeswoman Taylor Rogers said the administration acted "to ensure our military and key industries maintain uninterrupted access to critical resources."
Source: CNBC
Trading involves risk.
Risk Disclaimer
