The United States is considering whether to extend the 60-day waiver of the Jones Act as fuel prices remain under pressure after the war in Iran, according to reports citing U.S. officials.
The Merchant Marine Act of 1920, known as the Jones Act, requires vessels moving merchandise between points in the United States to be U.S.-built, U.S.-owned, and coastwise endorsed by the U.S. Coast Guard, even when transportation involves land, water, or a foreign port for part of the route.
President Donald Trump issued the waiver on 18 March after oil and gasoline prices rose during the Middle East crisis and the de facto closure of the Strait of Hormuz. At the time, the White House said the measure was intended to reduce short-term disruption in the oil market as the U.S. military continued Operation Epic Fury in Iran.
The administration also said the waiver would allow resources including oil, natural gas, fertilizer, and coal to move more freely to U.S. ports for 60 days. The current waiver is due to expire in mid-May, and officials are now discussing whether it should be extended.
According to officials cited by Bloomberg, the administration has been speaking with industry participants to get a clearer view on a possible extension. Axios also reported that the White House said as many as 40 tankers had delivered oil between U.S. ports since the waiver was introduced. That increased the available fleet by 70% and helped lower some costs.
Even so, the waiver has so far had only limited effect on fuel prices, as global supply disruption and higher crude costs have outweighed the benefit of additional domestic shipping capacity.
