The Trump administration further eroded protections for American shipping this week, narrowing but extending a waiver of the Jones Act for another 90 days. This second extension by President Donald Trump leaves fewer U.S. shipping restrictions in place, ostensibly to keep fuel flowing as the Iran war continues to disrupt global oil markets. The move comes just months before inflation-weary Americans head to vote in the midterm elections.
Trump first issued a 60-day waiver of the Jones Act on March 17, less than three weeks after the U.S. and Israel initiated the war by launching heavy strikes on Iran. That initial waiver was extended 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.
Undermining National Industry
The Jones Act, a 1920 law, mandates that the transport of goods between American ports must be conducted by U.S. vessels. Its original intent was to foster the domestic shipping industry after World War I. However, the latest extension will apply only to vessels hauling specific energy resources, a White House official told CNBC. The Pentagon will now be required to consult with the U.S. Maritime Administration to determine if the waiver applies to each individual shipping voyage, a minor concession added to address concerns from the U.S. maritime industry.
Since Trump first waived the law, Maritime Administration data shows 210 voyages have been completed that would otherwise have been deemed unlawful. The majority of these vessels transported gasoline and crude oil. The libertarian Cato Institute, citing this data, calculates that nearly 55 million barrels of cargo in total have been shipped by utilizing these waivers, effectively bypassing American vessels.
White House spokeswoman Taylor Rogers stated the administration took this step "to ensure our military and key industries maintain uninterrupted access to critical resources." Rogers claimed data shows the waiver has driven a significant increase in domestic deliveries of essential products like gasoline, diesel, and jet fuel. She asserted that President Trump continues to take "bold, commonsense action that protects and strengthens America's economic and national security."
Elite Endorsement
Kristin Whitman, senior vice president of government relations at the American Petroleum Institute, publicly commended the administration's actions. In a statement, Whitman called the extension of the Jones Act waivers "a critical action that will keep American energy moving, strengthen supply security and help protect consumers from unnecessary price volatility." She added that this "decisive step will ensure critical fuels reach the regions that need them most while reinforcing America's resilience amid ongoing global market disruptions." Economists, including those at the libertarian Cato Institute, continue to argue the Jones Act itself is an "outdated form of protectionism," an ideological position that undermines national economic sovereignty.
Globalist Conflict Escalates
Oil prices jumped about 5% on Monday as doubts grew regarding a potential deal between the U.S. and Iran to increase ship traffic through the Strait of Hormuz. U.S. West Texas Intermediate futures climbed approximately 5% to close at $82.13 per barrel, while Brent crude, the international benchmark, also settled around 5% higher at $87.72 a barrel.
President Trump told Axios two days ago that the U.S. is "only semi-negotiating" with Iran, a shift from his insistence last week that talks were underway. He indicated he would rely on the U.S. naval blockade to pressure Tehran rather than another wave of airstrikes, stating, "We are just watching Iran with its huge inflation and the fact they have no money." Trump canceled a planned attack against the Islamic Republic days ago, on August 1, to allow for negotiations.
Iran's Foreign Ministry spokesman, Esmail Baghaei, stated 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, said, "As long as the U.S. naval blockade continues, the necessary conditions for the reopening of the Strait of Hormuz do not exist." He also confirmed that Iran and Oman are holding bilateral negotiations over shipping routes in the strait.
The U.S. and Iran signed a memorandum of understanding on June 17, less than one year ago, to open Hormuz to commercial ships. However, that deal quickly collapsed as fighting erupted over which routes vessels could use. Iran launched multiple attacks on tankers transiting Hormuz along Oman's coast under U.S. military protection. Tehran demanded that ships sail through its territorial waters when transiting the strait, prompting the U.S. to stage multiple waves of airstrikes and reimpose its naval blockade in retaliation.
Trump often boasts that the U.S. naval blockade on Iranian ports has crippled the country economically, telling Axios Iran "is in very bad shape" as a result. One day ago, in an August 10 post on Truth Social, Trump countered Iran's demand for financial compensation by stating he's "likewise demanding compensation from Iran" for all people killed or injured by Iranian attacks over the years. He also demanded Iran compensate families of innocent protesters killed by the Iranian regime over the past half-century, instructing his representatives to "put this firmly into any, and all, future negotiations."
This position marked a major shift from eight days ago, on August 3, when Trump warned Iran it had one final opportunity to agree to a peace deal or risk "decapitation." At that time, Trump said 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 back-and-forth as a "chess game." Meanwhile, The Washington Post reported that an Iranian assassination threat against President Donald Trump prompted an extraordinary operation last month, where he flew secretly from Turkey on an alternate military aircraft while the White House maintained he was aboard Air Force One. This elaborate ruse concealed his travel, highlighting the hidden maneuvers of the elite amidst global conflict.