Where to begin?

The Trump administration on Monday extended the Jones Act waiver for 90 days while simultaneously narrowing its scope, retaining fewer U.S. shipping restrictions to maintain fuel supplies during the Iran war.

President Donald Trump's second extension of the waiver comes as the conflict continues to create economic turmoil by disrupting global oil markets, just months before inflation-weary Americans head to the polls for the midterm elections.

Oil prices have climbed again after the latest signals from the Trump administration regarding a deal to reopen the Strait of Hormuz failed to materialize, while U.S. oil reserves have fallen to their lowest levels in decades.

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Trump first issued a 60-day Jones Act waiver on March 17, less than three weeks after the U.S. and Israel launched a heavy strike on Iran, triggering the war. The Trump administration extended the waiver by 90 days in mid-May. The latest 90-day extension should last through mid-November, after the midterm elections.

However, a White House official said the latest extension will narrow the scope, applying only to vessels carrying certain energy resources. The official added that the extension also requires the Pentagon to consult with the U.S. Maritime Administration and determine whether the waiver applies to each individual shipping voyage.

According to the official, the new restrictions are intended to address concerns from the U.S. maritime industry.

"We commend the administration for its leadership in extending the Jones Act waiver, which is a critical step to keep American energy flowing, strengthen supply security, and help protect consumers from unnecessary price volatility," said Christine Whitman, senior vice president of government relations at the American Petroleum Institute, in a statement.

"This decisive action will ensure that essential fuel reaches the areas that need it most, while enhancing U.S. resilience amid ongoing global market disruptions," Whitman said.

What is the Jones Act?

The Jones Act is a 1920 law that requires goods transported between U.S. ports to be carried on U.S.-built and U.S.-flagged ships.

The law was designed to develop the domestic shipping industry after World War I. However, some economists, including those at the libertarian Cato Institute, argue that the Jones Act is an outdated form of protectionism.

According to data from the U.S. Maritime Administration, since Trump first waived the law, 210 voyages have been completed that would otherwise have been considered illegal. Most of these vessels carried gasoline and crude oil. The Cato Institute cited this data to calculate that nearly 55 million barrels of goods have been transported through the waiver.

White House spokesman Taylor Rogers said the Trump administration took this measure "to ensure our military and critical industries have uninterrupted access to key resources."

"The data shows that the waiver has significantly increased domestic deliveries of key products like gasoline, diesel, and jet fuel. President Trump continues to take bold, pragmatic actions to protect and strengthen America's economic and national security," Rogers said.