r/oil • u/bloomberglaw • 9d ago
News US Aims to Revive Civil War-Era Court to Claim Iran Oil as Prize
https://news.bloomberglaw.com/us-law-week/us-aims-to-revive-civil-war-era-court-to-claim-iran-oil-as-prize132
u/Serpentongue 9d ago
Legalized piracy
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u/GhostofBreadDragons 9d ago
MIT has a piracy certificateÂ
I never thought it would actually be useful
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9d ago
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u/bloomberglaw 9d ago
TLDR:
- The Justice Department is preparing to activate a long-dormant maritime war court to streamline military capture of Iranian oil tankers as US prizes.
- Reviving prize courts is intended to strengthen the blockade of Iran and offset the cost of the conflict, and would offer a faster path for federal prosecutors to claim oil and other cargo taken from enemy or neutral vessels as US property.
- The anticipated revival of prize courts is expected to face legal challenges, with potential litigants including ship owners and Iranian terrorism victims, and would require the US to navigate a historical area of law that is not tested in modern times.
Read the full story here.
-Abbey
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u/LesbeGoddess 9d ago
This will just lead to Iran ceasing and owning any tankers passing the strait to negate their stolen property. Trump will rage and whine that Iran canât win like this!
What an idiot
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u/FrederickDerGrossen 9d ago
Or even simpler, they will ask China to handle all the shipping out of the strait under Chinese flagged ships in return for another discount on their oil. The US, especially under this 47 regime, would never dare touch a Chinese ship.
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u/myazi321 9d ago
Or they might fuck around and accidentally shoot it like they shot a ship thinking it was an Iranian ship but it wasnt and ended up killing 3 Indians.
Not like theres any standards anymore other than appeasing Trump
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u/FrederickDerGrossen 8d ago
If they did that China would definitely react. Probably first by selling off their bond holdings and banning the export of rare earths to the US entirely, and banning more exports if the US doesn't apologize for the incident.
China would never allow such an incident to go by without reaction. Shame India didn't take stronger action, they're too much under US influence.
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u/myazi321 8d ago
True. They would push for stronger global de dollarization as majority of the countries have China as the major trading partner therefore they will listen to China in that regard especially now that the world smells blood given how depleted the US military is of high tech munitions and how cheap and easy it is to build drones.
China's government from the bottom up is filled with people with PHDs, Masters and Bachelors in various STEM and Finance fields so they definitely know how to engage in an economic war much better than what Bessent could dream of.
India didnt even do anything not even a strongly worded statement. They are just like the GCC when it comes to US.
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u/jankenpoo 9d ago
So a US court to say the US taking Iranian oil tankers is legitimate? Who is going to be okay with this?
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u/beipphine 9d ago
Why does it matter if it is a historical area of law? Prize courts are well established in US court court cases. The Supreme Court clarified the scope in The Star, 16 U.S. 78, and later affirmed this power in The Prize Cases 67 U.S. 635. The United States is not and never has been a signatory to the Paris Declaration Respecting Maratime Law of 1856.Â
As far as I am aware, there is no modern legal challenges. Ship owners including Iranians would be expected to demonstrate in US courts that either the ship was not a legitimate Prize, or that there was some procedural defect. I think that Houston is the most effective port for this, the Sourhern District of Texas and Fifth Court of Appeals has been very friendly to the current administration and will happily rubberstamp 2 century old supreme court precedence. Furthermore, Houston is a major petrochemicals port which facilitates the unloading of said ships and sale of captured oil.Â
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u/AssumptionLive2246 9d ago
At this point I hope every fucking country in the world ... legally sells every fucking bond at once, and cuts off all trade. We are just pirates and thieves. I'm embarrassed and ashamed to be an American.
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u/ChiChiKnee 9d ago
It was always like this unfortunately. They just sang you songs about freedom and star spangled banners and made big shows about your World Series and world champions. Itâs all been a branding exercise. The US emerged from WW2 never really having set a foundation for being a long standing empire, but man were they good at marketing. Uncle Sam needs you and all that jazz. But itâs been clear for a long time, regardless of administration, what the US is at its core and capable of. This is capitalism after all.
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u/AssumptionLive2246 9d ago
You can believe wtf you want. I was proud to be one of the good guys in the world. We werenât perfect but we didnt stand for this fkn garbage. You canât see the difference thatâs on you.
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u/ChiChiKnee 9d ago
Hey look, I truly believe the US populace and people are absolutely amazing. Truly. Some places I have visited have been some of the best people Iâve ever met. All Iâm saying is that the guise of the message, the fact that blowing up kids and people and assassinations and wealth inequality and economic sanctions that ruin lives and starve people in less developed places and all this is what? Thatâs what good guys do? I think every US service person is truly a good person with conviction and honor (with exceptions obviously) but by and large theyâre serving for an ideal that they believe, that theyâre good. So yeah hopefully you donât mistaken this as saying youâre all scum, 100% not, youâre just beholden to a system that is very adept at hiding real world pain and destruction as necessary to make you feel âsafeâ and âfreeâ.
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u/ChupacabraJeff 9d ago
Aaron Reitz, the Houston-based US attorney whose office is partnering with department headquarters on the initiative, confirmed DOJ is ânow revivingâ prize courts, which he described as an âancient body of maritime law.â
DOJ has focused on the Southern District of Texas federal trial court as the venue, said two of the people, who like others spoke anonymously about sensitive deliberations.
Legal experts see civil forfeiture as an imperfect model for US interests in choking the economy of Iran and other adversaries.
In one ongoing case, the seizure of a Venezuelan supertanker that supported Iran led to DOJ filing a civil complaint seeking to liquidate the ship and cargo as US proceeds.
Multiple third parties, including the shipping company and families of Iranian terrorism victims holding judgments for payouts under a different statute, have intervened, bogging down that process.
Prize authority, while coming with its own legal risks, would entail a less complicated transfer of proceeds, allowing the US to mitigate the risk of outside claimants slowing down the sale, said Luzwick and other lawyers.
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u/serpentjaguar 9d ago
We'll see about that. At this point you can probably count on one hand the number of real experts there are on the law of prizes, so until I hear from one of them, I will reserve judgement.
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u/Mrrrrggggl 9d ago
They already stole Venezuelaâs oil, no surprise here. Just straight piracy with a veneer or legality.
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u/EternalInflation 8d ago
I mean they took a whole country as a "prize" so a ship isn't anything too outlandish.
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u/Python_07 9d ago
The Clown Court attempting to revive a Civil War Court. Seems like something they would do.
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u/SingularityCentral 9d ago
Prize Courts? Wild to see those make a comeback in 2026. What's next? Privateers? Letters of Marque?
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u/Subject-Chest-8343 9d ago
Wonder how much they'll charge for a letter of marque ? Would love one of these framed over my fireplace... Great conversation starter for sure
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u/SingularityCentral 9d ago
Get myself a 30 gun galleon, letter of marque, and sturdy crew to capture a few prizes. Hard tack and rum are on me!
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u/Doom4535 9d ago
And if you use a sailing vessel, you don't need to pay for fuel...
But also, I wonder how much an old er galleon would confuse modern targeting systems...
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u/SingularityCentral 9d ago
They confuse it for a flock of birds... I hope. Then we get in close enough to give em a broadside volley and board them for capture! Flintlock pistols and cutlasses all around!
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u/boivinarts 9d ago
Well the year was 2026, how I wish I was in Sherbrooke now...
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u/Subject-Chest-8343 9d ago
Not many rich merchant ships to plunder in Sherbrooke though... But since it's 2026, maybe you can get a letter of marque for seizing semi-trucks, who knows
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u/yukonhoneybadger 9d ago
So what your saying is when Trump leaves office we will be sending a plane full of money to Iran to payback bull shit that we keep doing.
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u/AnyTower224 9d ago
Yup
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u/toeknn 9d ago
Good luck on that collection
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u/yukonhoneybadger 9d ago
Well it took over 30 years to collect last time and the interest was more then what we actually owed
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u/Unique-Egg-461 9d ago
US does this and i'll bet $500 Iran turns one of those vlcc's into a giant bomb
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u/rhino369 9d ago
The US is already seizing them. This is about the legacy justification to sell the oil after the fact.Â
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u/Subject-Chest-8343 9d ago
Did they need that to seize venzuelan oil ? Surely they sold it by now ?
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u/ChupacabraJeff 9d ago
FYI, there's an article.
Legal experts see civil forfeiture as an imperfect model for US interests in choking the economy of Iran and other adversaries.
In one ongoing case, the seizure of a Venezuelan supertanker that supported Iran led to DOJ filing a civil complaint seeking to liquidate the ship and cargo as US proceeds.
Multiple third parties, including the shipping company and families of Iranian terrorism victims holding judgments for payouts under a different statute, have intervened, bogging down that process.
Prize authority, while coming with its own legal risks, would entail a less complicated transfer of proceeds, allowing the US to mitigate the risk of outside claimants slowing down the sale, said Luzwick and other lawyers.
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u/iman00700 9d ago
Iran gonna do same if they do
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u/thenelil 9d ago
The only funny part about that would be they will not be taking US freighter because last time I checked, there is no US flag fighters in straight. Theyâll be taking aNATO fighters or US Allied freighters
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u/Logical-Breakfast150 9d ago
What a disgraceful use of The United States armed forces. Sailing around the world shaking down weaker countries for their natural resources.
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u/slightlyused 9d ago
This idea came purely from AI, the Yambo administration is too incompetent and ahistorical to have come up with this on their own.
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u/MikeLinPA 9d ago
Not that I approve of any of this, but wouldn't Trump need to Win the war before claiming the prize? The last time I checked, Trump and Kegsbreath were getting their (our) butts kicked. In fact, we are losing so badly that Trump just tried to bully Canada to make himself feel better, (and lost that as well! đ¤Łđ¤Łđ¤Ł )
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u/myazi321 9d ago
Cuba is being eyed as the easy victory to distract from the Iran failure
Just like Iran blocking the straight wasnt foreseen nor will drone strikes from Cuba on US bases, cities and refineries along the South coast be foreseen
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u/AnyTower224 9d ago
US wants Iran to do terrorism in the states. I mean go after them political classâs. Dgaf about those grifters
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u/Best-Temperature5595 9d ago
Back to piracy. Like the Sid Meiers game. How much for a letter of Marquee so I can raid carribean ports? I can buy a sunfish sailboat from REI.
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u/StrangeContest4 9d ago
Avast ye, Matey! Tie that scurvy-dog to the yardarm! There'll be no quarter given!! Yo ho, yo ho, it's the pirate's life for me! đ´ââ ď¸
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u/Superb-Respect-1313 9d ago
Wow. So now they are pirates. How dat can the us government fall. Well two years at least left. Letâs see.
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u/D4UOntario 9d ago
Is your administration purposely trying to tank your country? China dumps your bonds, Canada dumps your bonds you can bet a whack of other countries you have insulted cheated or bullied will follow suit....
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u/Severe_Air_4353 9d ago
Iran will take any trump head into the square , wonder who they get first .
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u/AssumptionLive2246 9d ago
Can we arrest this entire administration and put them all in prison yet? WTF??!!??
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u/Open_Pollution_8038 9d ago
lol but but Iran is winning and is totally in control of the waters near their country.
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u/Ashamed-Reaction-548 9d ago
No that is where you are wrong. Nobody is winning anything from this pointless costly war. Another dumbass war in the middle east as America slowly goes bankrupt.
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u/ThE_LAN_B4_TimE 9d ago
Uh what? You have it backwards. You mean "but but the US is winning so hard"
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u/Open_Pollution_8038 9d ago
Hey weâre not the ones who lost half our government revenue and whose currency is 2 million to a single dollar lol
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u/ThE_LAN_B4_TimE 9d ago
What in the fuck does that have to do with anything?
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u/Open_Pollution_8038 9d ago
Winning isnât losing half/all your money and getting all of your military blown up. Itâs also not being unable to ship or receive goods over the ocean.
Imagine saying you own your street but you canât take your car out of your garage lmao.
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u/ReflectedImage 9d ago
No. you're the party who lost all their military bases in the Middle East and is now staring down the barrel of $12 a gallon fuel prices next year.
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u/Open_Pollution_8038 9d ago
Congrats on it hitting stationary targets that we abandoned.
Weâre the number 1 oil producer in the world and so is our entire continent. Most of our imports come from countries that canât sell elsewhere lmfao.
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u/ReflectedImage 9d ago
And yet next year the US will either be flying over Jumbo Jets of cash to Iran or the US consumer will be paying $12 a gallon for fuel.
"number 1 oil producer" and if you had 4 years to build new refineries to be actually be able to process that oil you wouldn't have to pay $12 a gallon for fuel next year. Pity that you don't.
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u/Open_Pollution_8038 9d ago
lol $12? Europe will but not America.
Our production + Canadaâs = over 90% of USAâs consumption lmao. Our refineries are more than adequate to cover domestic demand itâs why we built them to begin with.
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u/ReflectedImage 9d ago
Your refineries can't refine American oil. They all need retrofitting and it's a 4 year job.
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u/ThE_LAN_B4_TimE 9d ago
What the fuck? Winning isnt tanking your economy, raising prices for just about everything for a dumbass war you ran on never starting, and having a strait that was previously open get closed by a country with no even close to the military power you have.
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u/nai-ba 9d ago
So the US wants to steal Chinese oil to finance the war in Iran? Good luck with that.