US Reportedly Considers Reviving Civil War-Era 'Prize Courts' To Seize Iranian Oil Tankers

The US Department of Justice is preparing to revive the long-dormant“Prize Courts” system to facilitate the seizure of Iranian oil tankers and cargoes, Bloomberg reported, citing three people familiar with the matter.

The proposed move would revive an old maritime legal mechanism that allowed governments to adjudicate the capture of enemy vessels and cargoes during wartime. The system has been largely dormant since World War II.

Under the reported plan, the mechanism could allow US authorities to process the seizure of Iranian oil and other cargo more quickly than through existing civil forfeiture procedures. The proceeds from confiscated oil could potentially be transferred to the US Treasury, helping Washington offset the costs of the ongoing conflict.

The proposal would also provide another legal instrument for Washington to enforce its blockade of Iran and disrupt Tehran's oil revenues. The US has already intensified pressure on Iran's energy sector, including sanctions targeting oil traders, shipping companies and vessels linked to Iranian oil exports.

The cases could reportedly be handled by the US Southern District of Texas in Houston, a major centre for the American oil industry. US Attorney Aaron Reitz has confirmed that the Justice Department is working to revive what he described as an“ancient” body of maritime law, according to reports.

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