US Weighs Reviving 18th Century "Prize Law" to Seize and Sell Iranian Oil

According to a report by Oilprice.com citing Bloomberg, published Saturday, 7 Shahrivar 1405 (August 29, 2026), the US government is exploring an unusual legal route for Iranian oil and ships captured under its naval blockade: reviving "prize law," a wartime mechanism largely dormant since World War II. Per the report, the Justice Department is working with the Pentagon to use the mechanism, which unlike the slower, more contested civil forfeiture process, would let courts transfer ownership of vessels and cargo captured during an armed conflict to the United States and channel the sale proceeds to the US Treasury.

Aaron Reitz, the US Attorney whose office is working with Justice Department officials in Washington, told Bloomberg the department is "now reviving" prize courts, calling it an "ancient body of maritime law." Oilprice.com reported that Houston, with its major port and proximity to the largest concentration of US petrochemical infrastructure, is being considered as a central venue for such cases. US forces have intercepted a number of Iranian owned or Iran linked vessels since the naval blockade was imposed in Farvardin 1405 (April 2026).

The report added that legal experts are uncertain whether the centuries old framework can operate under modern international law and whether there is sufficient legal basis given questions over congressional authorization for the conflict, while critics warned the move could set a precedent that rivals such as China could later invoke against US shipping.