The Trump administration on Monday again narrowed its waiver of the Jones Act, extending it for another 90 days to keep fuel flowing amid the ongoing Iran war. This move directly benefits energy corporations, allowing them to circumvent domestic shipping regulations as the conflict continues to disrupt global oil markets and drive up prices for inflation-weary Americans. President Donald Trump's second extension of the waiver ensures these conditions persist just months before midterm elections.
Trump first issued a 60-day waiver of the Jones Act less than one year ago, on March 17. This came less than three weeks after the U.S. and Israel initiated the war by launching heavy strikes on Iran. The administration then extended the waiver in mid-May for another 90 days. The newest 90-day extension is set to last until mid-November, pushing past the date of the midterms.
The Jones Act, a 1920 law, mandates that goods transported between American ports must use U.S. vessels. It was originally conceived to bolster the domestic shipping industry after World War I. However, economists, including those at the libertarian Cato Institute, now label it an outdated form of protectionism, hindering the free flow of capital.
Since the initial waiver, Maritime Administration data shows 210 voyages have been completed that would otherwise have been unlawful. The majority of these vessels carried gasoline and crude oil. Cato, analyzing this data, calculates that nearly 55 million barrels of cargo have been shipped by utilizing these waivers, directly facilitating corporate energy supply chains.
Who Profits from Conflict
Kristin Whitman, senior vice president of government relations at the American Petroleum Institute, openly praised the administration's actions. She stated, "We commend the administration's leadership in extending the Jones Act waivers, a critical action that will keep American energy moving, strengthen supply security and help protect consumers from unnecessary price volatility." Whitman's statement underscores how state policy is shaped to secure profits and market stability for the energy sector, framing corporate interests as consumer protection.
White House spokeswoman Taylor Rogers echoed this sentiment, asserting the Trump administration acted "to ensure our military and key industries maintain uninterrupted access to critical resources." Rogers added that data indicates the waiver has led to "a significant increase in domestic deliveries of essential products such as gasoline, diesel, and jet fuel." President Trump, she claimed, continues to take "bold, commonsense action that protects and strengthens America's economic and national security," aligning state power with capital accumulation.
Oil prices surged approximately 5% on Monday, reflecting growing doubt about any deal between the U.S. and Iran to increase ship traffic through the Strait of Hormuz. U.S. West Texas Intermediate futures climbed about 5%, closing at $82.13 per barrel. Brent crude, the international benchmark, also settled around 5% higher at $87.72 a barrel, demonstrating the direct financial gains for oil capital amidst geopolitical tension.
Imperial Blockade and Economic Warfare
President Donald Trump told Axios 2 days ago that the U.S. is "only semi-negotiating" with Iran, despite his insistence last week that talks were underway. Trump indicated he would rely on the U.S. naval blockade to pressure Tehran, rather than another wave of airstrikes. He openly stated, "We are just watching Iran with its huge inflation and the fact they have no money," revealing the intent of economic warfare to cripple the Iranian economy.
Trump canceled a planned attack against the Islamic Republic days ago, on Aug. 1, ostensibly to allow for negotiations. However, Iran's Foreign Ministry spokesman, Esmail Baghaei, countered this, stating Monday that the U.S. must lift its blockade before Tehran would agree to fully open Hormuz. Baghaei, quoted by the state news agency Tasnim, declared, "As long as the U.S. naval blockade continues, the necessary conditions for the reopening of the Strait of Hormuz do not exist." He confirmed Iran and Oman are holding bilateral negotiations over shipping routes in the strait, asserting their own agency against imperial pressure.
The U.S. and Iran signed a memorandum of understanding to open Hormuz to commercial ships less than one year ago, on June 17, but the agreement quickly collapsed. Fighting erupted over which routes vessels could use. Iran launched multiple attacks on tankers transiting Hormuz along Oman's coast, which were under U.S. military protection. Tehran demanded that ships sail through its territorial waters when transiting the strait, leading the U.S. to stage multiple waves of airstrikes and reimpose its naval blockade in retaliation for the tanker attacks.
Trump frequently boasts that the U.S. naval blockade on Iranian ports has economically crippled the country. He told Axios that Iran "is in very bad shape" as a result of the blockade. 1 day ago, in an Aug. 10 post on Truth Social, Trump demanded "compensation from Iran" for all people killed or injured by Iranian attacks over the years, and for families of innocent protesters killed by the Iranian regime over the past half-century. He instructed his representatives to include this demand "firmly into any, and all, future negotiations," leveraging the blockade for further imperial demands.
Trump's position marked a significant shift from days ago, on Aug. 3, when he warned Iran it had one final opportunity to agree to a peace deal or risk "decapitation." At that time, Trump claimed he decided to hold off on ordering what would have been "the biggest attack since World War II" at the request of Saudi Arabia, the United Arab Emirates, and Qatar. He later dismissed the situation as a "chess game," revealing the cynical calculation behind imperial maneuvers.
The State's True Function
The White House reported President Trump was aboard Air Force One as he departed a NATO summit. However, The Washington Post revealed his departure involved an elaborate ruse to conceal his travel. The Post reported that an Iranian assassination threat against President Donald Trump prompted an extraordinary operation last month, where he secretly flew from Turkey on an alternate military aircraft while the White House maintained he was aboard Air Force One. This demonstrates the lengths the state will go to protect its leadership, even as it orchestrates economic warfare and military interventions abroad, solidifying its role as the protector of accumulated wealth and power.