Trump extends Jones Act waiver 90 days as Iran war keeps US fuel prices elevated

President Donald Trump extended the Jones Act waiver for a further 90 days on Friday, keeping foreign-flagged vessels eligible to carry oil and other commodities between US ports as the war with Iran continues to push fuel costs higher.

A White House official confirmed the extension to Reuters. The new period continues what is already the longest waiver in the 1920 shipping law's history.

Foreign ships still require approval for individual voyages under a restriction introduced in August, after earlier blanket exemptions drew opposition from the domestic maritime industry. Roughly 300 waivers were granted under the blanket exemptions in March and May; only 48 have been issued since the switch to individual approvals in August, according to government figures cited by Reuters.

Phillips 66 was among the first to use the original waiver, shipping roughly 300,000 barrels of Bakken crude from Texas to Monroe Energy's Trainer refinery in Pennsylvania aboard the Malta-flagged HTM Warrior in April.

US gasoline averaged $3.91 per gallon on Thursday, up from $2.98 before the Iran war began. Diesel stood at $6.10, compared with $3.76 previously, according to AAA. The White House said the waiver is intended to contain gasoline, diesel and fertiliser prices, though previous exemptions have delivered little relief at the pump, with shipping representing only a small share of retail fuel costs.

More than 50 Republican lawmakers urged Trump in June to restore restrictions, citing American maritime jobs and national security concerns. Under current rules, shippers must prove that suitable American vessels are unavailable before obtaining approval for a foreign vessel.