U.S. revives prize courts to seize Iranian tankers

The Trump administration is in the process of setting up a prize court, Peter Zeihan reported.

A prize court issues legal rulings on goods seized by the U.S. military, sells them on the government's behalf, and directs the proceeds to the Treasury.

The system targets Iran's shadow fleet as a whole. It has existed since the 1800s, but no one currently in practice has experience with it.

Peter Zeihan stressed that three core requirements must be met for a seizure operation to succeed.

First, the military must be trained to board vessels on the high seas, seize them, and sail them to another location.

Second, securing a port where seized cargo can be unloaded and processed is essential.

Third, a legal process, namely a prize court, must be in place to rule on whether the seized cargo is lawful and approve its sale.

Peter Zeihan explained that the prize court is being set up in the Southern District of Texas, which includes Houston.

This is because Houston is one of the world's leading petrochemical hubs, with refineries and infrastructure well suited to processing seized cargo such as oil, making efficient operations feasible.

The prize law passed in the 1800s assumes a state of war, so a legal question arises when there is no congressional war declaration or interim authorization for hostilities.

The defense could argue that the prize law does not apply because the country is not at war, and this is a very reasonable argument with a strong chance of success.

However, because the seized vessels are ultimately shadow ships owned by Iranians, Peter Zeihan predicts the U.S. government's chances of winning would grow if Iran rejects U.S. jurisdiction and does not appear in court.