Trump Grants Longest-Ever Jones Act Waiver, Allowing Foreign Ships to Move Oil Between US Ports as Iran War Drives Up Fuel Costs

President Donald Trump extended a Jones Act waiver for 90 days on Friday, allowing foreign-flagged ships to move oil and other commodities between U.S. ports, the longest waiver in the law’s history.

It is the longest waiver in the history of the more than 100-year-old shipping law.

What the Jones Act Waiver Means for Energy Markets

The Jones Act requires cargo moving between U.S. ports to travel on ships built, owned and crewed by Americans. The waiver is meant to lower gasoline, diesel and fertilizer prices, which rose because of the war on Iran, by adding shipping flexibility and easing bottlenecks.

The extension takes effect Monday and runs through at least mid-February, a White House official told Bloomberg.

The administration issued a blanket waiver in March, a month after the U.S. launched its war on Iran. In August, it extended the waiver but required case-by-case decisions. That requirement remains under the latest extension, Reuters reported.

Tracker Shows New Domestic Routes and Barrels Shipped

The Cato Institute, which favors repealing the Jones Act, says Maritime Administration voyage data shows new domestic routes. Cato said the data is not comprehensive, so actual cargo volumes are likely higher.

As of Nov. 10, Cato’s tracker recorded 343 voyages involving 255 vessels, including 84 trips through the Panama Canal. It also showed that about 91.9 million barrels of oil had been shipped.

According to American Automobile Association data, diesel averaged $6.064 a gallon nationwide on Nov. 13, about 46 cents below its record $6.5276 set Sept. 22.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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