US Plans Prize Courts to Seize Iranian Oil

The Justice Department is preparing to revive prize courts, a long-dormant maritime tribunal system, to streamline the military seizure of Iranian oil tankers and their cargo as U.S. prizes and funnel proceeds to the Treasury, in coordination with the Pentagon. The plan would give federal prosecutors a faster, adjudicated path to claim assets seized from enemy or neutral vessels, potentially using the Southern District of Texas due to its proximity to Houston’s large petrochemical complex. Prize courts, last used broadly in the 18th and 19th centuries, faced modern legal and operational hurdles as the government would need to navigate untested terrain with ship owners and victims of Iranian terrorism among likely challengers. The effort would mark the second notable deployment of an obscure court tool in 2025–26, following the administration’s first use of the Alien Terrorist Removal Court earlier in the year. DOJ, the Navy, and judges would have to contend with developments in international law since the 1800s, while civil forfeiture actions remain the current default approach to sanctions-related seizures. If adopted, the prize courts could accelerate seizures and asset disposition, with revenues directed to the U.S. Treasury, though legal opposition and practical challenges are expected.