President Donald Trump issued an extension of a Jones Act waiver, allowing refiners more time to use foreign-flagged ships to transport fuel between U.S. ports to ease rising oil prices driven by the war in Iran.
White House officials said Friday that the president will extend the Jones Act waiver for 90 days. On March 18, he issued a 60-day waiver of the law, which requires goods shipped between U.S. ports to be carried only by American-built ships. The waiver is aimed at lowering the cost of transporting oil from Gulf refineries to the East Coast and other parts of the country.
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White House spokeswoman Taylor Rogers wrote on X that “new data compiled since the initial waiver was issued revealed that significantly more supply was able to reach U.S. ports faster.”
“This waiver extension provides both certainty and stability for the U.S. and global economies,” she added. “The Trump Administration has taken several actions to mitigate short-term disruptions to the energy markets, and this extension will help ensure vital energy products, industrial materials, and agricultural necessities are maintained.”
Specifically, the Jones Act mandates that all goods transported between U.S. ports be moved by ships that are U.S.-built, -flagged, and -crewed. The suspension of the law allows foreign tankers to transport oil around the country.
The waiver issued in March was set to expire in mid-May, but the extension will allow refiners to use foreign vessels until July.
It was reported on Thursday that Phillips 66 was the first refiner to utilize the Jones Act waiver by shipping crude oil from Texas to the East Coast with a foreign tanker.
Phillips 66 used a foreign-flagged tanker to load crude oil in early April at a Phillips 66 terminal in Beaumont, Texas, OilPrice.com reported. The Malta-flagged vessel is set to carry the cargo to an oil refinery in Pennsylvania owned by Delta Air Lines subsidiary Monroe Energy.
Oil prices have remained high since the war in Iran began in late February. The Trump administration has yet to reach a peace deal with Iran.
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The war has effectively closed the Strait of Hormuz, a significant trading route in the region that moves nearly 20 million barrels of crude oil daily, or about a fifth of global supply. The halt on trade going through the strait has caused energy prices to soar.
The administration has taken several steps to ease prices, including releasing stocks from the Strategic Petroleum Reserve, issuing an emergency waiver for summer fuel blends, and invoking the Defense Production Act to boost production of oil products.
