DOJ Revives Maritime Prize Courts to Legally Seize Iranian Oil Tankers Amid Escalating Tensions

A former CIA covert operations officer, Mike Baker, warned on ‘Varney & Co.’ that escalating economic pressures stemming from U.S. sanctions and blockades against Iran have intensified the regime’s fear of renewed civil unrest.

The Department of Justice (DOJ) is preparing to reactivate maritime prize courts as part of a strategic move to facilitate the legal seizure of Iranian oil tankers, potentially classifying them as wartime prizes. This development could significantly aid in offsetting the financial burdens associated with ongoing conflicts, as reported by Bloomberg Law.

These revived prize courts would streamline the process for the U.S. government to legally claim vessels intercepted by the Navy during the enforcement of a naval blockade around Iran. Once seized, the ships and their cargo—including oil—could be sold, with proceeds directed toward the U.S. Treasury.

The initiative was initially reported by Bloomberg Law, citing multiple unnamed sources familiar with the matter.

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U.S. Attorney for the Southern District of Texas, Aaron Reitz, emphasized the necessity of preparedness in a statement provided to FOX Business: “Our national security interests may require the United States military to seize vessels or cargo supporting the enemy during military conflict.” He added, “If that happens, our federal courts must be ready to adjudicate the disposition of these captured vessels and cargo.”

The U.S. may use prize courts to formally seize captured Iranian vessels, with their oil or other sold cargo helping to offset the cost of the war. (Reuters/Hamad I Mohammed)

Reitz further explained the historical context of prize law: “Prize law is an ancient body of maritime law—already codified in statute but which we are now reviving—that sets the rules for how seized maritime property is condemned, returned or disposed of.”

Implementing this strategy is expected to trigger legal challenges from shipping companies owning vessels targeted in the blockade. Additionally, victims of Iranian-sponsored terrorism may file claims against any assets seized under such proceedings.

Prize courts were commonly used in American history, dating back to the Revolutionary War, though the practice had not been actively utilized since the Spanish-American War at the turn of the 20th century. Initially, proceeds from the sale of captured ships and cargo went directly to the crews of the seizing vessels—an arrangement that ended in 1899 as part of broader efforts to modernize wartime legal frameworks.

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The U.S. Navy would have to seize a vessel with its cargo for it to go through the prize court process. (Zachary Pearson/U.S. Navy / Getty Images)

Over time, the role of prize courts diminished due to shifts in naval warfare tactics. Innovations like submarines during World Wars I and II complicated traditional methods of stopping and boarding enemy ships. Despite adaptations, including a 1942 law allowing prize cases involving ships in allied ports, no formal prize cases were adjudicated in recent conflicts or subsequent decades.

A 2022 Congressional Research Service report highlighted that while prize jurisdiction lies exclusively with federal district courts operating in admiralty capacity, legislative revisions in the 1950s—and updates as recent as 2021—have kept prize law relevant within modern military doctrine. These updates now extend to include branches like the Space Force.

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The U.S. Navy is enforcing a blockade of the Strait of Hormuz, which is a vital choke point for oil tankers in the Persian Gulf. (Giuseppe Cacace/AFP via Getty Images)

Reitz indicated readiness within his jurisdiction to handle potential prize-related cases if implemented by the Trump administration. He underscored the strategic importance of his region: “The Southern District of Texas is home to the best ports in the nation along the Gulf of America and is the strategic nexus of maritime power, energy infrastructure, international commerce and federal law enforcement capacity.”

“My office is ready to represent the interests of the United States in adjudicating prizes brought to the Southern District of Texas through our federal courts in the interests of national security and justice,” Reitz stated.

The White House referred all inquiries regarding the matter to the Department of Justice.

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