Trump extends shipping waiver, with limits, to aid energy flow

President Donald Trump has extended a waiver allowing foreign ships to transport oil and other commodities between US ports, with a focus on energy products. This 90-day extension, issued on Monday, comes shortly before the earlier waiver was set to expire in mid-August. The scope of the relief has been narrowed this time, prioritizing the movement of energy to support military and key industries, according to a White House spokeswoman.

Data indicates that the waiver has led to a significant increase in domestic deliveries of essential products like gasoline, diesel, and jet fuel. The Cato Institute estimates that over 54 million barrels of energy products have moved between US ports on more than 200 voyages since March, when the initial waiver was introduced. These voyages, typically involving vessels not affiliated with US adversaries such as China, have enabled American companies to source energy products at lower costs.

Oil prices have risen since the US and Israeli strikes on Iran in late February, which triggered a conflict that has affected global energy transit through the Strait of Hormuz. As negotiations to resolve the war and reopen the Strait remain stalled, gasoline prices in the United States have surged, putting additional strain on household budgets ahead of the midterm elections.