Seized Iranian Oil Worth $600 Million Is Sailing Toward the U.S.

Nearly six million barrels of seized Iranian crude, valued at close to $600 million, are crossing the Atlantic toward the United States aboard three captured tankers.

The Tifani and Majestic X now sit off the coast of Brazil after naval forces boarded them in the Indian Ocean in April, according to Bloomberg. A third vessel, known both as the Lenore and the Davina, cleared the Cape of Good Hope at the southern tip of Africa and is heading west into the Atlantic after being interdicted in the Indian Ocean in June. All three are very large crude carriers, each capable of holding 2 million barrels of crude.

The cargo's value reflects the market. Brent futures currently trade at about $106 per barrel.

"Nearly six million barrels (valued at nearly $600M) of seized Iranian crude oil are quietly crossing the Atlantic Ocean towards the United States of America," Tanker Trackers posted on X on Wednesday.

A blockade, a ceasefire, and a relapse

The U.S. launched its naval blockade in April, when President Donald Trump first imposed it on the Iranian regime. The operation targeted ships attempting to enter or leave Iranian ports. It also applied to Iran-linked vessels anywhere in the world, including the Indian and Pacific Oceans.

A brief ceasefire lifted the blockade over the summer. Weeks later, Trump reimposed it as he pivoted toward economic warfare and away from bombs.

A legal instrument from the Middle Ages

The channel the administration is using to seize the tankers and enforce forfeiture is prize law, a body of maritime jurisprudence with roots in the Middle Ages.

It differs sharply from conventional civil seizure procedures. Civil seizure laws require the U.S. government to identify a statutory violation and establish jurisdiction. Prize law demands neither. A captor does not need a warrant, and the seizure does not need to be tied to a violation of any existing statute.

The practical effect is significant. Instead of law enforcement authorities like the Coast Guard seizing a vessel under civil statutes, the Defense Department can seize an enemy vessel directly.

In the United States, prize law appears in the Constitution itself. The document's Captures Clause outlines rules for capturing and confiscating enemy vessels during times of war. The tool has a long operational history. During the Civil War, President Abraham Lincoln used the Prize Act of 1812 to blockade Confederate seaports. That same law was most recently invoked during the Spanish-American War.

Texas as the destination

If the tankers carrying the Iranian oil reach a U.S. port, it will likely be along the Texas coast. The state hosts top refiners and the Houston-based U.S. Attorney for the Southern District of Texas.

That office, headed by Aaron Reitz, told Bloomberg it stands ready to represent the U.S. "in adjudicating prizes" brought to Texas through federal courts.

In a statement last month to Fortune's Sasha Rogelberg, Reitz did not specify whether the Justice Department will invoke the Prize Act of 1812, the Captures Clause, or another law.

"Our national security interests may require the United States military to seize vessels or cargo supporting the enemy during military conflict. If that happens, our federal courts must be ready to adjudicate the disposition of these captured vessels and cargo," Reitz said. "Prize law is an ancient body of maritime law—already codified in statute but which we are now reviving—that sets the rules for how seized maritime property is condemned, returned, or disposed of."

The outcome of the Texas court proceedings will determine whether a statute last used in 1898 becomes a recurring instrument of U.S. economic warfare against Iran.