By Jarrett Renshaw
July 15 (Reuters) - The White House is weighing another extension of waivers allowing foreign ships to transport goods between U.S. ports as renewed conflict with Iran raises concerns about energy prices and supply disruptions, two sources familiar with the discussions said on Wednesday.
The Trump administration is considering whether to extend the waivers with geographic restrictions, limiting where foreign-flagged vessels can transport goods between U.S. ports, as officials seek
to preserve a tool they say has helped ease supply pressures while addressing criticism from maritime industry groups and Republican allies.
The White House, along with the heads of the Energy, Transportation and Interior departments, met earlier this week to weigh options ahead of a potential decision before the end of July, the sources said.
Waiving the shipping law is one of several levers the White House has pressed in an attempt to control oil prices, with domestic crude now about $80 a barrel. The White House has also loaned oil from the Strategic Petroleum Reserve, which is now at its lowest level since 1983.
A White House official said that no decision has been made on whether to issue a third waiver extension, noting the current waiver doesn't expire until August 16.
"President Trump’s decisive action to waive the Jones Act has helped prevent supply chain shortages across the country. The administration is regularly monitoring how the waiver is being used," the official said.
The Jones Act, a century-old law requiring goods moved between U.S. ports to be carried on American-built, owned and crewed vessels, has become a political challenge for the administration.
The waiver was designed to ease supply constraints and energy costs by allowing more ships to move goods, but it has drawn criticism from maritime groups and Republican allies who argue it weakens U.S. shipbuilding and national security.
The backlash has grown among some Republican lawmakers, including House Speaker Mike Johnson, who urged the administration earlier this month to end the waiver, arguing it undermined the U.S. maritime industry.
The Trump administration first granted the waiver on March 17, allowing foreign-flagged vessels to move commodities including oil, fuel and fertilizer between U.S. ports. The administration later extended the waiver through August 16, and a third extension is being considered as renewed fighting between U.S. and Iran has sent prices higher.
The White House says the waiver has increased shipping capacity and helped move supplies between U.S. ports. Critics dispute its impact and warn it could hurt domestic shipbuilders and American crews.
(Reporting By Jarrett Renshaw; Editing by Chizu Nomiyama and Andrea Ricci )
