DOJ revives Civil War prize courts to seize Iranian tankers
- The Justice Department plans to use Civil War-era prize courts to physically seize Iranian oil tankers.
- Treasury Secretary Scott Bessent launched secondary sanctions targeting foreign banks to choke off Tehran's revenue.
- Top military commanders formally opposed extending Middle East deployments as regional escalation threatens energy shipping.
The White House is digging deep into legal history.
The Department of Justice is preparing to reactivate 19th-century maritime prize courts to physically seize Iranian oil tankers on the high seas. Unused since World War II, the Civil War-era framework allows federal forces to confiscate enemy cargo to offset rising military blockade costs. On Breaking Points, Saagar Enjeti and Ryan Grim noted that seizing crude upends basic freedom of navigation while yielding minimal financial returns after processing costs.
"Stealing oil does not fund an empire."
- Ryan Grim, Breaking Points with Krystal and Saagar
The legal move marks a sharper turn in Washington's pressure campaign.
Treasury Secretary Scott Bessent launched what administration officials call an economic D-Day against Iranian trade networks. Speaking on Bitcoin And on August 25, David Bennett detailed how US officials targeted crypto wallets, gold, and shipping, securing nearly $1 billion in digital asset seizures. But on The Intelligence from The Economist, Fraser McIlwraith warned the blockade will fail because China purchases 90 percent of Iranian crude. On Breaking Points, University of Chicago professor Robert Pape argued that severe trade blockades backfire by forcing cornered targets to strike back.
"Economic blockades have never forced a major power to capitulate without a messy ground war."
- Robert Pape, Breaking Points with Krystal and Saagar
The escalation moved quickly from financial threats to physical confrontation. Tehran and Oman established a joint shipping corridor through the Strait of Hormuz, excluding American forces and collecting transit fees. On The Tucker Carlson Show, former counterterrorism official Joe Kent warned that maximalist policy goals leave military planners with few conventional choices, pointing to leaked Pentagon presentations that floated tactical nuclear strikes on Iranian sites like Kharg Island.
The strategy is creating severe friction inside the Pentagon itself. Leaders across US European, Pacific, and Southern Commands filed formal non-concurs against Defense Secretary Pete Hegseth extending deployments in the Middle East into 2027, according to Breaking Points. Over 50,000 personnel remain tied down while critical missile interceptor stockpiles dwindle worldwide.
Washington hopes to cushion the shock by securing access to Venezuelan reserves and managing energy flows. But financial statecraft cannot eliminate the physical risks of an escalating naval blockade.