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

President Donald Trump has once again extended a waiver that permits foreign ships to transport oil and other commodities between US ports, amid ongoing tensions with Iran. This 90-day extension comes shortly before the previous waiver was set to expire in mid-August. The scope of the relief is narrower this time, primarily focusing on the movement of energy products, according to a White House spokeswoman.

The administration aims to ensure uninterrupted access to critical resources for the military and key industries. Data indicates that the waiver has led to a significant increase in domestic deliveries of essential products such as 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.

The waiver has facilitated domestic commerce that the Jones Act previously prohibited. Oil prices have risen following US and Israeli strikes on Iran, prompting retaliatory measures that have closed the Strait of Hormuz, a vital energy transit route. Negotiations to resolve the conflict and reopen the strait have thus far been unsuccessful.