DOJ Moves to Revive Civil War-Era Maritime Prize Courts to Seize Iranian Oil Tankers

The Justice Department is preparing to reactivate long-dormant maritime 'prize courts' — last used in the Spanish-American War era — to streamline the legal confiscation of Iranian oil tankers captured under the US naval blockade, with proceeds from sold oil and cargo routed to the Treasury. Aaron Reitz, US Attorney for the Southern District of Texas (identified as the venue given its port and maritime infrastructure), confirmed DOJ is 'now reviving' the mechanism: '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.' The plan aims to shield the US from third-party claims and accelerate liquidation of seized Iranian assets, offsetting the war's costs, but is expected to draw legal challenges from shipping companies and other claimants against the seized vessels and cargo.