The Trump administration has granted a 90-day extension to a key maritime shipping waiver, as crude oil markets react to the latest effort by Washington to ease supply disruptions linked to the ongoing Iran war.
The White House confirmed on 24 April that it would extend the Jones Act waiver through to mid-August, three months beyond the original expiry date of 17 May. The move exempts foreign-flagged vessels from the century-old law, which ordinarily requires goods shipped between American ports to travel on US-built, US-flagged and US-crewed ships. The decision is the administration’s latest attempt to stabilise domestic energy markets as the conflict in the Middle East continues to disrupt global oil supplies.
Oil prices have swung sharply in recent weeks amid uncertainty over the waiver’s future, reflecting the broader volatility gripping global energy markets since the Iran conflict began. Brent crude, the international benchmark, has surged nearly 36 per cent over the past two months, while the average price of unleaded petrol at the pump in the United States has climbed to $4.74 per gallon — a rise of approximately 35 per cent. Analysts have noted that the waiver’s psychological impact on markets may be as significant as its logistical one, with expectations often moving prices before physical supply changes materialise.
Since the original 60-day waiver was granted on 18 March, more than 40 tankers have used or are currently using the exemption to move oil between US ports, according to White House data. The administration says the waiver has enabled roughly nine million barrels of American oil to reach states including California, Florida and Alaska. White House officials have pointed to the expanded fleet capacity — up 70 per cent — as evidence the policy is working, with data suggesting faster delivery of supplies to domestic ports.
However, the shipping industry and energy analysts have questioned whether the waiver has delivered meaningful relief. According to the American Maritime Partnership, regular gasoline prices have actually risen by 32.4 cents per gallon nationwide since the waiver came into effect. Independent shipping data reviewed by Reuters showed that domestic oil movements between US ports were largely unchanged in March compared to February, while US fuel exports hit a record high as refiners moved cargoes to higher-priced markets in Asia and Europe.
Notably, the framing of the extension has shifted from its original rationale. While the first waiver was sold primarily as a fuel price relief measure, administration officials are now citing military supply continuity and national defence logistics as the core justification. The extension covers not just crude oil, but also natural gas, fertiliser and other industrial materials deemed vital to national security.
The extension has deepened a rift between domestic refiners and the US maritime industry. Oil producers and refinery operators have broadly welcomed the move, arguing it is essential to keep American crude flowing to domestic facilities. But shipping groups contend that foreign vessel availability was never the primary bottleneck, and warn that prolonged suspension of the Jones Act risks setting a dangerous precedent for one of the foundational pillars of US maritime policy.
The administration, meanwhile, has indicated it will maintain the waiver for as long as the Iranian threat continues. As one White House adviser put it: “As long as the Iranian threat persists and fuel prices continue to rise, the president would prefer to maintain the waiver for as long as necessary.”
