White House set to extend Jones Act waiver for foreign-flagged ships

what happened

According to Reuters, citing three industry sources, the Trump administration will extend within days a waiver that lets foreign-flagged ships carry oil and other commodities between US ports.

Under the extension, each voyage will face individual review instead of receiving a blanket exemption from the Jones Act. The move could come as early as Thursday. The waiver is one of several tools the government has used to bring down diesel and gasoline prices, which rose amid the wars in Iran and Ukraine.

The previous extension, in August, ran until November 15. Reuters notes it has already been the longest waiver in the more than century-old law's history. A White House official said no decision has been made and that any announcement will come directly from Trump or his administration.

why it matters

For markets, the new voyage-by-voyage review matters as much as the extension itself, since tighter control means less flexibility in moving fuel between coasts. For fuel traders, it signals a possible shift in US domestic logistics, though the practical effects will depend on the final details.

market impact

US diesel and gasoline: possible easing of logistics, but stricter control over each voyage

• ↔US diesel and gasoline mixed — more shipping flexibility, but each voyage will be reviewed separately

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