US Revives Civil War-Era Courts to Seize Iranian Oil
The US Justice Department is reviving an ancient body of maritime law to decide the fate of Iranian oil seized during military conflict. Prize courts, used during the Civil War to adjudicate the legitimacy of goods seized at sea, will be reactivated to handle cases involving captured vessels and cargo.
Aaron Reitz, a Houston-based attorney working with the Justice Department, described prize courts as an 'ancient body of maritime law.' He noted that the US military may seize vessels or cargo supporting the enemy during conflict, requiring federal courts to adjudicate their disposition.
Maritime lawyers and former prosecutors anticipate ship owners and Iranian terrorism victims will file claims with the prize court to receive funds generated by selling off seized oil. However, Allison Luzwick, an attorney specializing in maritime law, warns that using the prize court may be challenging due to significant developments in international law since its last use.
The decision to revive prize courts comes as President Donald Trump shifts his approach to the war against Iran, focusing on implementing a blockade and sanctions rather than additional strikes. Since imposing the blockade earlier this year, the US has captured and disabled multiple vessels attempting to reach or exit Iranian ports.