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US Looks To Revive 'Prize Courts' For Iranian Oil Seizures
The US government is exploring an unusual legal route for dealing with Iranian oil and ships captured as part of its blockade: bringing back a wartime maritime system that has barely been used for generations, according to Bloomberg.
The Justice Department, working with the Pentagon, is preparing to use prize law, which historically allowed courts to decide whether vessels and cargo captured during armed conflict could legally become property of the United States. The mechanism was once commonplace in naval warfare but largely disappeared from American practice after the 19th century and has been dormant since World War II.
The appeal for the administration is largely practical. At present, the government generally relies on civil forfeiture to take ownership of vessels accused of sanctions violations or other offenses. Those cases can become complicated and slow, particularly when shipping companies, creditors, terrorism victims or other parties assert competing rights to the ship or its cargo. A prize proceeding could potentially narrow those disputes and allow captured oil to be sold more quickly, with the proceeds going to the US Treasury.
Bloomberg writes that Houston is being considered as a central venue for these cases. The Southern District of Texas has jurisdiction over a major port and sits alongside the country’s largest concentration of petrochemical infrastructure, giving it the capacity to receive and store substantial quantities of crude. US Attorney Aaron Reitz, whose office is working with DOJ officials in Washington, said the department is “now reviving” prize courts, describing the concept as an “ancient body of maritime law.”
The effort comes as Washington looks for additional ways to put economic pressure on Iran. US forces have already intercepted Iranian-owned or Iran-linked vessels since the blockade was imposed in April. Using prize law could turn those captures into a more direct financial tool: ships and oil deemed lawful prizes could be liquidated, potentially generating revenue while depriving Iran of valuable exports.
Supporters also see a strategic purpose beyond the money. Reviving the system would reinforce the message that the US considers the blockade a serious wartime measure rather than simply another sanctions regime. It could also make it more difficult for neutral commercial vessels to continue transporting goods that Washington believes support Iran.
But there is considerable uncertainty over how a centuries-old framework would operate under modern international law. “This really is a historical area of law that is not tested in modern times,” maritime attorney Allison Luzwick said. Courts could be asked to determine whether the current conflict provides sufficient legal grounds for invoking prize authority at all, particularly given questions surrounding congressional authorization for the hostilities.
The practical challenges are significant as well. Federal judges, prosecutors and the Navy have virtually no contemporary experience administering prize cases, meaning procedures would effectively have to be rebuilt for modern shipping and warfare. Shipowners and other parties with financial claims are also expected to contest seizures.
There are broader geopolitical risks. Critics argue that normalizing prize law could create a precedent that Washington may later regret. A rival power such as China, for example, could point to US practice when attempting to seize American or neutral merchant vessels during a future conflict.
The proposal therefore offers Washington a potentially faster way to convert captured Iranian oil into government revenue and tighten economic pressure on Tehran, but it would do so by reopening an area of wartime law that has gone largely untouched for more than a century.
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China Ousts 4 Senior Military Commanders In Widening Purges
Authored by Dorothy Li via The Epoch Times,
China has removed two top generals from its highest military command body and expelled two other senior commanders from a Communist Party-controlled legislature, as turbulence continues within the upper echelon of the country's armed forces.
Gen. Zhang Youxia, vice chairman of the Central Military Commission, speaks at the opening of the Western Pacific Naval Symposium in Qingdao, China, on April 22, 2024. (Kevin Frayer/Getty Images)Once China's No. 1 general, Zhang Youxia, has been removed from the national Central Military Commission (CMC), according to a brief statement issued by the National People's Congress Standing Committee via state media Xinhua on Aug. 28.
The statement didn't offer any reason for the swift dismissal of Zhang, who had served as vice chair of the national CMC since 2018.
Zhang, also a member of the Chinese Communist Party's (CCP's) ruling Politburo, was abruptly placed under investigation in January, along with another senior commander, Liu Zhenli. Both men were accused of serious violations of discipline and laws, a phrase that generally refers to corruption or disloyalty.
Liu was also stripped of his title as a member of the national CMC, according to Xinhua.
Technically, China has two separate CMCs-one affiliated with the state and the other within the CCP-sharing the same personnel and leadership. In practice, however, the Party's CMC holds the real power. The two commanders haven't been formally, or at least publicly, expelled from the Party's military body.
The latest announcement effectively reduced the CMC from six members to one, plus Chinese leader Xi Jinping at the top.
China's armed forces have been embroiled in an unprecedented purge that has almost vacated the leadership of every branch of the People's Liberation Army (PLA), raising questions about the military's combat readiness.
A February report by the Center for Strategic and International Studies estimated that more than 100 senior military commanders have likely been purged since 2022.
Unlike the military chiefs previously targeted, Zhang and Liu are among the few active-duty generals in the country who have battlefield experience. Zhang served in China's brief war with Vietnam in 1979, while Liu took part in border skirmishes with Vietnam in the 1980s.
Because these officers were members of the legislature, they previously had legal protection against arrest or prosecution. By removing them from those positions, that protection was stripped away, opening them up to criminal prosecution.
According to China insiders who previously spoke to The Epoch Times, Beijing has already decided to charge Zhang, likely with corruption-related allegations, to shift attention away from the power struggle within the Party.
In addition to Zhang and Liu, the NPC on Aug. 28 revoked the membership of Zhong Shaojun, a long-time aide to Xi, according to Xinhua.
Zhong became Xi's secretary in the early 2000s when Xi was transferred to a position in Zhejiang, China's top economic powerhouse on the eastern coast. Since then, Zhong followed Xi into roles in Shanghai and, later, the central leadership in Beijing.
After Xi took power as the Party leader in late 2012, Zhong was appointed to the CMC chairman's office, working directly under Xi, and elevated to the military rank of senior colonel.
Also expelled from the NPC on the same day was Ju Qiansheng, commander of the PLA Strategic Support Force.
Xinhua did not provide reasons for their departure.
The purge in the defense establishment shows no signs of abating. In an Aug. 24 notice, China's military said it's seeking information from the public on potential procurement violations in the Rocket Forces, a secretive PLA unit that commands the country's conventional and nuclear missiles.
This notice echoed a 2023 announcement by the PLA's Equipment Development Department that encouraged citizens to report potential corruption and misconduct related to hardware procurement going back to October 2017. Since then, China has expelled two defense ministers and all four generals who had commanded the Rocket Forces.
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Brazil's Socialist President Sees Lead Disappear As Bolsonaro Heir Turns Presidential Election Into Coin Toss
Brazilian socialist President Luiz Inácio Lula da Silva and right-wing Senator Flávio Bolsonaro are virtually tied as August comes to a close, according to UBS analysts citing new polling data, turning October's presidential election into a potential coin toss. A Bolsonaro victory would accelerate the eradication of left-wing rule across South America as the continent undergoes a once-in-a-generation rightward political realignment. That shift may also offer an early signal of Europe's upcoming 18-month election cycle, in which right-wing parties and candidates are gaining momentum across several major countries.
Alexandre de Ázara, a managing director and chief economist for Brazil at UBS, told clients on Friday that "the gap is closing" in Brazil's presidential race as Bolsonaro pulls within striking distance of President Lula.
Lula (Left); Bolsonaro (Right)UBS's latest polling aggregator shows Lula taking 44% of valid first-round votes, down one percentage point from Monday's update. Bolsonaro rose one point to 38%, while other candidates remained at 18%.
First round aggregator and polls (% of valid votes for Lula)
First round aggregator and polls (% of valid votes for Flávio)
The runoff numbers are even tighter, according to Ázara. Lula now leads Bolsonaro by just 50.6% to 49.4%, cutting the incumbent's advantage to 1.2 percentage points from 2.8 points at the start of the week.
Ázara uses a mixture of polling data from Datafolha, Veritá, Nexus, Gerp, Indexa and PoderData. He said new polling data from Vox, Nexus, Real Time Big Data, and Atlas are expected over the next few days.
Prediction markets appear considerably more confident in Lula than the polls.
Polymarket gives the president a 62% chance of winning...
...compared with 35% for Bolsonaro. Kalshi places the contest at 61% versus 39%.
Brazilian voters face a stark ideological choice in October between the incumbent socialist Lula and right-wing Bolsonaro. Bolsonaro has portrayed the economy as trapped by high spending, high interest rates, and rising debt.
Barclays estimates that the next administration would need a fiscal adjustment of at least 2.5% of gross domestic product, or about 350 billion reais, to stabilize the debt burden by 2031.
TS Lombard expects Lula to pursue limited spending reforms following the election but projects that debt would still peak at 94.7% of GDP in 2034. Under Bolsonaro, the analysts model a faster adjustment and a proposed debt-linked spending rule, but debt would still reach 90% in 2032.
Comments from Bank of America's Latam Equity Quant:
Brasilia in election mode: investors on standby waiting to see how the elections play out. Uncertainty on the electoral outcome remains high as polls have been showing more convergence in President Lula's and Flavio Bolsonaro's voting intentions.
ING Analysts:
BRL: Presidential polling in play
It has been a positive environment for the carry trade, but what has also been helping the Brazilian real this week has been an opinion poll showing that President Lula's lead over Flavio Bolsonaro has dropped to just one percentage point. Bolsonaro is running on a ticket of fiscal consolidation and hoping to emulate the victory of Colombia's Abelardo de la Espriella this year, which has been greeted warmly by local asset markets.
The first round of the Brazilian presidential election takes place on 4 October. Expect USD/BRL to be bounced around by polling results before then. But with 12% implied yields through the forwards and the chance of a regime change, we suspect the real can continue to comfortably outperform the steep forward curve.
The election may determine whether Brazil moves further left or right politically. Across the continent, the latest country to shift right was Colombia. Many others have followed:
Nomura analyst Andrzej Szczepaniak expects a similar right-wing sweep across Europe in the coming elections.
More broadly, voters in the West are rejecting left-wing regimes, as failed progressive experiments, open borders, and nation-killing socialist policies have been nothing but devastating.
Tyler Durden Fri, 08/28/2026 - 22:10