The U.S. government is exploring a rare legal path for dealing with Iranian oil and seized ships: reviving a wartime maritime regime that has been dormant for generations. The Justice Department is reportedly working with the Pentagon to prepare to invoke "prize law," a mechanism that historically allowed courts to determine whether ships and cargo captured in armed conflict could legally become U.S. property. It was commonplace in naval warfare but had largely disappeared from U.S. practice since the 19th century and remained dormant since World War II.

Why restart? Civil confiscation is too slow and complicated.

The appeal of this system to the government lies primarily in its practicality. Currently, the U.S. government typically relies on civil forfeiture proceedings to acquire ownership of vessels accused of violating sanctions or other illegal activities. However, these cases are often complex and slow, especially when shipping companies, creditors, victims of terrorism, or other parties claim competing rights to the vessel or its cargo. In contrast, the capture procedure promises to streamline these disputes, allowing captured oil to be sold more quickly, with proceeds going directly to the U.S. Treasury. Reports indicate that Houston is being considered as the primary venue for these cases. The Southern District of Texas has jurisdiction over a major port and is adjacent to the nation's largest concentration of petrochemical infrastructure, possessing the capacity to receive and store large quantities of crude oil. U.S. Attorney Aaron Reitz stated that the Justice Department is reviving the capture court system, describing it as an ancient maritime legal framework. Reitz's office is working with Justice Department officials in Washington to advance this process.

Strategic calculation: The blockade must have wartime significance.

This effort comes as Washington seeks more ways to exert economic pressure on Iran. Since the blockade was imposed in April, the U.S. military has repeatedly intercepted ships owned or affiliated with Iran. Activating the capture statute could transform these interceptions into a more direct financial tool: ships and oil deemed legally captured could be sold, potentially generating revenue and depriving Iran of valuable export resources. Supporters also see strategic objectives beyond monetary gain. Reactivating the statute would reinforce the message that the U.S. views the blockade as a serious wartime measure, not just another sanctions mechanism. It could also make it more difficult for neutral merchant ships to continue transporting goods that Washington deems supportive of Iran.

Enormous Uncertainty: Century-Old Law Meets Modern International Law

There is considerable uncertainty about how a framework from centuries ago will function under modern international law. "It's really a historically untested area of law," says maritime lawyer Allison Luzwick. Courts may be required to determine whether the current conflict provides sufficient legal grounds for invoking capture rights, especially given the many questions surrounding whether Congress authorized this hostile action. The practical challenges are equally significant. Federal judges, prosecutors, and the Navy have virtually no contemporary experience handling capture cases, meaning the procedures must essentially be rebuilt for modern shipping and modern warfare. Shipowners and other parties with financial claims are also expected to contest the seizure.

Geopolitical risks: Could Washington reap what it sows?

There are also broader geopolitical risks. Critics argue that normalizing capture laws could set a precedent that Washington will later regret. For example, a rival superpower could invoke U.S. practices in a future conflict to attempt to seize American or neutral merchant ships.

Conclusion

This proposal offers Washington a potential shortcut to more quickly convert captured Iranian oil into government revenue while tightening economic pressure on Tehran, but at the cost of reopening a wartime legal domain that has been virtually untouched for over a century. Is it a clever "old trick in a new way," or the opening of Pandora's box? In the current context of intertwined maritime games and geopolitical struggles, the answer to this question will likely only become clear after the fate of the first seized oil tanker is revealed.