Trump extends limited waiver of shipping law to keep oil flowing in U.S. amid Iran war

• Since the initial March 17 waiver, 210 voyages carrying nearly 55 million barrels of cargo (primarily gasoline and crude oil) have been completed that would have been unlawful under the 1920 Jones Act
• The narrowed waiver now requires Pentagon consultation with the U.S. Maritime Administration for each individual shipping voyage, addressing concerns from the domestic maritime industry
• U.S. petroleum reserves have fallen to their lowest levels in decades while oil prices resume climbing as traffic through the Strait of Hormuz remains severely limited

Summary

Key Development:

The Trump administration has extended its Jones Act waiver for another 90 days (until mid-November 2026) while significantly narrowing its scope. This marks the second extension since the waiver was first issued on March 17, 2026.

Background:

The Jones Act, a 1920 law, requires goods transported between U.S. ports to use American vessels. The waiver suspension was implemented to address fuel supply disruptions caused by the ongoing U.S.-Israel war with Iran, which began in late February 2026.

New Restrictions:

• Waiver now applies only to vessels carrying specific energy resources
• Pentagon must consult with U.S. Maritime Administration for each individual shipping voyage
• Changes address concerns from the domestic maritime industry

Market Impact:

• Traffic through the Strait of Hormuz remains minimal
• Oil prices continue climbing amid failed reopening negotiations
• U.S. petroleum reserves have fallen to multi-decade lows
• 210 voyages completed under previous waivers, transporting nearly 55 million barrels of cargo (primarily gasoline and crude oil)

Political Context:

The extension comes months before U.S. midterm elections, as inflation-weary voters face continued economic pressures from global oil market disruptions.

Industry Response:

The American Petroleum Institute praised the decision, stating it will "keep American energy moving" and "protect consumers from unnecessary price volatility" while ensuring critical fuels reach regions in need.

Strategic Rationale:

The White House emphasized the waiver ensures military and key industries maintain access to critical resources during ongoing national security and economic challenges.