US prepares to revive dormant maritime court to seize Iranian oil
The Justice Department is considering prize courts to process captured tankers and cargo as part of the Iran blockade.
The US Justice Department is preparing to revive a dormant maritime court system to process the military seizure of Iranian oil tankers and cargo, Bloomberg reported.
The prize courts would give federal prosecutors a faster route to claim goods taken from enemy or neutral vessels as US property. Seized cargo could then be sold, with proceeds transferred to the Treasury.
Aaron Reitz, the US attorney in Houston working with the department, confirmed that officials were reviving the courts, an ancient system of maritime law.
The plan is expected to face legal challenges from ship owners and victims of Iranian terrorism. Maritime lawyers and former prosecutors also warned that the Justice Department, Navy and judiciary have little modern experience operating the system.
Macro, rates, and crypto—what moved markets and what matters next.
Daily. Free. Join 34,000+ readers across crypto, finance, and policy.
Prize courts were common in earlier naval conflicts but have been largely unused since the Spanish-American War and dormant since World War II. The administration has instead relied on civil-forfeiture law to seize assets tied to sanctions violations.