DOJ Revives Centuries-Old Prize Law to Seize Iranian Oil Tankers
Key Takeaways
- •The Trump administration is reviving prize law to enable the U.S. military to seize Iranian oil tankers and sell their assets, as confirmed by U.S. Attorney Aaron Reitz.
- •Unlike civil seizure laws, prize law allows the Department of Defense to seize enemy vessels directly without a warrant or proof of a statutory violation.
- •Prize law dates back centuries and was last invoked during the Spanish-American War in 1898; President Lincoln used the Prize Act of 1812 to blockade Confederate seaports.
- •The strategy could bolster the naval blockade of Iran and allow the U.S. to recoup war costs by selling seized oil and vessels.
- •Legal experts anticipate complications, including the lack of a congressional declaration of war against Iran and likely disputes over the blockade's legality and the treatment of neutral vessels.

The Trump administration is reviving a centuries-old legal tradition that would make it easier to seize Iranian oil tankers and sell off their assets.
Aaron Reitz, U.S. Attorney for the Houston-based Southern District of Texas, confirmed to Fortune the revival of prize law—a set of rules that allows military forces to seize enemy vessels.
"Our national security interests may require the United States military to seize vessels or cargo supporting the enemy during military conflict. If that happens, our federal courts must be ready to adjudicate the disposition of these captured vessels and cargo," he said in a statement. "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."
Invoking prize law would allow U.S. forces to bolster the naval blockade of Iran and recoup costs from the war. The news was first reported by Bloomberg Law.
Prize law stands in contrast to civil seizure laws, which require the U.S. government to identify a statutory violation by a vessel and establish jurisdiction over that violation—a process that often entails extensive litigation, according to Michael Frevola, a maritime litigation partner at Holland & Knight LLP.
By comparison, prize law does not require a captor to have a warrant or tie a vessel's seizure to a violation of an existing statute. Instead of law enforcement authorities such as the Coast Guard seizing a vessel under civil seizure laws, the Department of Defense—usually through military force—can seize an enemy vessel directly.
The 'ancient' roots of U.S. prize law
Prize laws have existed since the Middle Ages and have been embedded in the U.S. legal canon since the nation's founding. The Constitution's Captures Clause outlines rules for capturing and confiscating enemy vessels during times of war.
During the 19th century, President Abraham Lincoln used the Prize Act of 1812 to blockade Confederate seaports—an act that was contested and eventually upheld by the Supreme Court. Prize law was most recently invoked during the Spanish-American War, which legitimized the U.S. naval detainment of Spanish vessels as prizes of war.
Reitz did not specify whether the Justice Department will invoke the Prize Act of 1812, the Captures Clause, or another law. But the less complicated legal process that prize law affords for capturing enemy vessels would have clear benefits for the Trump administration.
"There's definitely a financial interest in being able to sell the oil and being able to sell the vessel and then just put that money into the coffers of the United States, which is another thing that this administration has shown is a priority," Raymond Waid, a veteran naval officer and maritime lawyer at Liskow and Lewis, told Fortune.
Will the Prize Act help the U.S. in the Iran war?
Legal experts warned that while reviving prize law could in theory expedite the seizure of Iranian ships, they anticipate ample legal complications that could hamper how effective the strategy really is.
One issue is the sheer age of the law, which has not been invoked since the Spanish-American War in 1898.
"It's not like the DOJ has some really veteran Prize Act litigators on their staff," Frevola quipped. "So we'd have to conduct a séance to wind up getting serious counsel in terms of this."
The U.S. government will also need to prove that a capture takes place during a war whose hostilities fall within congressional and presidential authority. Congress has not declared war against Iran, which may create grey areas around how appropriate prize law would be. The lack of an official war declaration could also push Congress into getting more involved in a dispute it has largely avoided so far, Waid suggested.
Allison Luzwick, a maritime lawyer and Frevola's colleague at Holland & Knight LLP, told Fortune that the U.S. will likely also face litigation over the legality of its blockade and whether it was adequately declared and communicated. This is particularly sensitive for neutral vessels carrying cargo from other states and whether they are subject to capture.
"There's going to be arguments about whether or not that vessel is even subject to the blockade, or if they received notice about the blockade, if they intended to run the blockade," she said.
How those disputes play out will hinge on how U.S. courts handle wartime legal authority in the absence of a formal declaration of war—and whether neutral shipping interests challenge captures in federal court.
This story was originally featured on Fortune.com.