The Trump administration is dusting off a Civil War-era wartime law to seize Iranian oil tankers and sell them off, with the profits going straight to the U.S. Treasury.
Story Snapshot
- The Department of Justice is reviving “prize law,” a dormant wartime legal tool, to seize Iranian oil tankers.
- Officials say seized ships and cargo could be sold, with the money going to the U.S. Treasury.
- The plan is meant to tighten the U.S. blockade on Iran and cut off Tehran’s oil profits.
- Legal experts warn the plan faces court fights because Congress never declared war on Iran.
- No formal Justice Department policy document has surfaced yet; reporting relies on officials familiar with the plans.
DOJ Dusts Off a Wartime Legal Tool
Aaron Reitz, a U.S. attorney working with Justice Department headquarters, told reporters the department is “now reviving” prize courts, calling prize law an “ancient body of maritime law.” Bloomberg reported on August 26 that the Justice Department is preparing to activate a “long-dormant maritime war court” to make it easier for the military to capture Iranian oil tankers.
Prize law dates back centuries and lets U.S. district courts with admiralty power decide whether a captured ship legally belongs to the government. Once a court “condemns” a vessel, the government can use it or sell it, with the money going into the Treasury.
How the Seizures Would Work
Fox Business reported that prize courts would let the government “legally claim” ships seized by the U.S. Navy, with money from selling captured tankers and cargo going to the Treasury Department. Forbes reported that a U.S. blockade on Iran already led to the capture of the Iranian-flagged tanker M/V Touska in April for allegedly running that blockade.
The administration’s goal is simple: choke off Iran’s oil money and make the regime help pay for the cost of the standoff. Third parties reportedly get less room to fight seizures in prize court than under normal civil forfeiture rules, giving the government a faster path to cash.
Legal Fight Looms Over Declared-War Question
Legal experts told Fortune that reviving prize law could speed up seizures in theory but warned of “ample legal complications” that could slow it down in practice. The government would need to prove captures happened during a war approved by both Congress and the president, and Congress has not declared war on Iran.
Attorney Allison Luzwick said modern international law and the rules of armed conflict have changed so much that using this old wartime framework is “highly problematic.” Legal scholar Jill Goldenziel warned that leaning on prize law now could hand rivals like China an excuse to seize American ships later using the same argument.
Federal judges, prosecutors, and even the Navy have almost no modern experience running prize cases, meaning the entire process would have to be rebuilt from scratch. Shipowners and other companies with money on the line are expected to fight the seizures in court.
A Tougher Stance on Iran
For conservatives frustrated by years of soft-touch policy toward Tehran, this looks like a president willing to use every legal tool on the books to squeeze a hostile regime. Iran has funded terror proxies and threatened American shipping for decades, and hitting its oil money with wartime law sends a clear message: Washington is done playing defense.
Critics call the doctrine outdated and warn of court fights ahead, but no formal Justice Department memo or filed case has surfaced yet confirming exactly how far this goes. Still, the administration’s push for aggressive, lawful options to starve Iran’s war chest fits a pattern of putting American interests first, even if it means digging up a century-old statute to get the job done.
Sources:
cbsnews.com, foxbusiness.com, hklaw.com, briev.ai, oilprice.com, x.com, legalinsurrection.com
