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Aaron Reitz says US DOJ revives prize law to seize Iranian oil tankers

US Attorney Aaron Reitz announced that the Department of Justice will revive historic prize law, enabling the military to capture Iranian oil tankers without the usual civil seizure procedures, a move that could reshape the legal battle over sanctions on Iran.

US naval vessel positioned near an Iranian oil tanker in the Persian Gulf

Aaron Reitz told reporters that the US Department of Justice is preparing to revive an ancient set of maritime rules known as prize law, which would let the military seize Iranian oil tankers and dispose of their cargo more easily.

What happened?

The announcement came from the US Attorney for the Southern District of Texas, based in Houston. Reitz said the move would give federal courts a ready framework for handling captured vessels and cargo, a process that historically dates back to the Middle Ages.

"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," Reitz said.

Prize law differs from the civil seizure regime that usually requires a statutory violation and a warrant. Under the revived rules, the Department of Defense could capture an enemy vessel directly, bypassing the Coast Guard's typical civil procedures.

Why does it matter?

Reviving prize law could strengthen the US naval blockade of Iran and provide a quicker way to recoup costs from the conflict. Michael Frevola, a maritime litigation partner at Holland & Knight, noted that civil seizure often involves lengthy court battles, whereas prize law offers a more streamlined path.

Historically, the US has used similar powers during the Civil War and the Spanish-American War, but it has not been invoked since 1898. Raymond Waid, a veteran naval officer and maritime lawyer, said the financial incentive of selling seized oil and vessels aligns with the current administration's priorities.

What happens next?

Legal experts warn that the age of the law could create challenges. Congress has not formally declared war on Iran, which may raise questions about the authority to apply prize law. Allison Luzwick of Holland & Knight warned that the US could face lawsuits over the legality of any blockade and whether neutral vessels received proper notice.

Without a clear war declaration, the Department of Justice may need to navigate a grey area that could draw Congress deeper into the dispute. The lack of recent prize-law litigators in the DOJ, as Frevola joked, might even require a "séance" to find suitable counsel.

As the US prepares its legal strategy, the next steps will likely involve internal reviews within the Department of Justice, consultations with the Department of Defense, and possibly new legislation or executive orders to clarify the scope of any naval actions against Iranian shipping.