Brief
US to Receive $600 million of Iranian Oil Seized During Trump‑era Blockade
Three very‑large crude carriers carrying Iranian oil seized by US forces in 2017 are moving toward the United States, where they may be adjudicated under prize law.
By Felo News Desk · Published
Three very‑large crude carriers that were seized by US naval forces in 2017 are now moving toward the United States, where they may be taken into custody under the Constitution’s prize law. The tankers, named the Tifani, Majestic X and the Lenore, were boarded in the Indian Ocean in April, June and later, and each can carry about two million barrels of crude. Bloomberg reported that the vessels are now off the coast of Brazil or have cleared the Cape of Good Hope and are heading west across the Atlantic.
According to a post on X by Tanker Trackers, nearly six million barrels of Iranian crude oil are quietly crossing the Atlantic toward the United States. The oil is valued at roughly $600 million, given current Brent futures of about $106 a barrel.
The seizure was part of a naval blockade that the United States imposed on Iran in April 2017, targeting ships attempting to enter or leave Iranian ports and extending to vessels linked to Iran anywhere in the world. The blockade was briefly lifted over the summer but was re‑imposed a few weeks later as President Trump shifted from bombing to economic warfare.
Unlike civil seizure laws, prize law does not require a warrant or a statutory violation to justify the capture of a vessel. The law is enshrined in the Constitution’s Captures Clause and has been invoked in past conflicts, including the Civil War and the Spanish‑American War. In the United States, the Defense Department can seize an enemy vessel, and federal courts can adjudicate the disposition of the cargo.
U.S. Attorney Aaron Reitz, head of the Southern District of Texas, told Bloomberg that the office is prepared to represent the United States in adjudicating prizes brought to Texas. Reitz said the federal courts must be ready to decide the fate of captured vessels and cargo, but did not specify which law the Justice Department would invoke.
Should the tankers arrive at a U.S. port, the likely destination would be the Texas coast, home to major refiners and the Houston‑based U.S. Attorney’s Office. The oil would then be subject to forfeiture proceedings under prize law.
Key facts
- Three Iranian oil tankers (Tifani, Majestic X, Lenore) are moving toward the United States (fortune.com)
- Each tanker can carry about 2 million barrels of crude (fortune.com)
- The oil is valued at roughly $600 million based on $106 a barrel Brent futures (fortune.com)
- The seizure was part of a naval blockade imposed by the US in April 2017 (fortune.com)
- Prize law does not require a warrant or statutory violation to justify capture (fortune.com)
- U.S. Attorney Aaron Reitz said the Southern District of Texas is ready to adjudicate prizes (fortune.com)
Background
The seizure of Iranian oil tankers in 2017 was part of a broader US strategy to curb Iran’s energy exports amid sanctions. The use of prize law, an ancient maritime doctrine, reflects the US’s willingness to apply wartime legal mechanisms to contemporary economic conflicts.
Timeline
- 2017-04-01 — US naval forces boarded Iranian-linked tankers in the Indian Ocean
- 2017-06-01 — US naval forces boarded the Lenore in the Indian Ocean
- 2026-09-27 — Fortune reports tankers moving toward the US under prize law
Why it matters
The movement of seized Iranian oil toward the United States could trigger legal proceedings under prize law, potentially affecting global oil markets and the enforcement of sanctions.
What happens next
If the tankers reach a U.S. port, federal courts will determine the disposition of the cargo under prize law. The outcome will be monitored by energy market analysts and legal experts.
Sources
- [1] fortune.com — originally reported as “The U. S. may soon receive $600 million worth of Iranian oil that was seized earlier in the war, putting an ancient body of maritime law back in focus”
