4 minNews
Justice Department revives centuries-old prize law to seize Iranian oil tankers
The Trump administration is reviving prize law, a centuries-old maritime legal doctrine, to seize Iranian oil tankers and sell their assets amid the conflict with Iran. The move could expedite captures but faces legal challenges.
The Justice Department is reviving a centuries-old maritime legal doctrine known as prize law to seize Iranian oil tankers and sell off their cargo and vessels, a move that could bolster the naval blockade of Iran and recoup costs from the conflict. Aaron Reitz, the U.S. Attorney for the Southern District of Texas, confirmed the revival, saying federal courts must be prepared to adjudicate the disposition of captured vessels and cargo if military forces seize them during conflict.
Prize law, which dates to the Middle Ages and is codified in U.S. statute, allows military forces to capture enemy vessels without the warrant requirements or statutory violation thresholds of civil seizure laws. Under civil seizure, the government must identify a specific legal violation and establish jurisdiction, often leading to extensive litigation. Prize law, by contrast, permits the Department of Defense to seize enemy ships directly, with courts then determining whether the property is condemned, returned, or disposed of.
The doctrine has deep roots in American legal history. The Constitution's Captures Clause outlines rules for confiscating enemy vessels during wartime, and President Abraham Lincoln used the Prize Act of 1812 to blockade Confederate ports during the Civil War, a move the Supreme Court upheld. The last time prize law was invoked was during the Spanish-American War in 1898, when U.S. naval forces detained Spanish vessels as prizes of war.
Reitz did not specify whether the Justice Department will rely on the Prize Act of 1812, the Captures Clause, or other statutory authority. Legal experts say the streamlined process offers clear advantages for the administration, particularly the financial benefit of selling seized oil and vessels. Raymond Waid, a veteran naval officer and maritime lawyer at Liskow and Lewis, noted that the administration has shown a priority in directing such proceeds into U.S. coffers.
However, experts warn that the revival faces significant legal hurdles. The law has not been used in over a century, leaving no experienced litigators in the field. Michael Frevola, a maritime litigation partner at Holland & Knight LLP, joked that the DOJ would need to conduct a séance to find serious counsel on the matter. More substantively, prize law requires that a capture occur during a war with hostilities authorized by Congress and the president. Congress has not declared war against Iran, creating potential grey areas about the law's applicability and possibly drawing Congress into a conflict it has largely avoided.
Allison Luzwick, a maritime lawyer at Holland & Knight, said the U.S. will likely face litigation over the legality of its blockade, including whether it was adequately declared and communicated. Neutral vessels carrying cargo from other states may challenge their capture, arguing they did not receive proper notice or did not intend to run the blockade. These disputes could complicate the administration's strategy and slow the seizure process.
Despite the challenges, the revival of prize law signals a more aggressive approach to enforcing the blockade and targeting Iranian oil revenues. The Justice Department's confirmation comes amid ongoing military operations and heightened tensions in the region, with the administration seeking new tools to pressure Tehran economically and militarily.
