Iran’s oil minister Paknejad resigns amid US blockade

Iranian Oil Minister Mohsen Paknejad resigned on Sunday. President Masoud Pezeshkian accepted the resignation and put Hamid Bovard, chief executive of the state-owned National Iranian Oil Company (NIOC), in charge of the ministry as acting minister, Iranian state media reported. The change at the top of the oil sector comes as a U.S. naval blockade and tighter sanctions have cut off Tehran's crude exports, its main source of income.reuters+3

Personal reasons cited

Mehdi Tabatabaei, the communications deputy in the president's office, told state TV that Paknejad had asked to resign for personal reasons "a long time ago." He said Pezeshkian accepted the request only because Paknejad insisted on leaving. Tabatabaei also posted the news on X: "With acceptance of Mohsen Paknejad's resignation by Dr. Pezeshkian, Hamid Bovard has been appointed as acting oil minister".arabnews+1

According to a statement carried by state broadcaster IRIB, an official from the president's office said Pezeshkian had first turned down the resignation and asked Paknejad to stay. The official said the president "commended his efforts and sincere service" when he accepted it. Some reports, including Mehr News Agency, said no reason was given.newscord+1

The president's decree relied on Article 135 of Iran's constitution, the NewsCord roundup reported. Tasnim news agency said that article lets an acting minister run a ministry for up to three months. In that time the president can put forward a permanent candidate for parliament to approve. Bovard will keep his NIOC role and his post as deputy oil minister until a new minister is named.newscord

Exports cut off by war

Paknejad had been oil minister of the OPEC member since August 2024. He is leaving as the seven-month war between Iran and the United States puts heavy pressure on the economy. Shafaq News said Tehran is facing one of the worst economic crises in its history, with limited access to foreign currency. It cited a Bloomberg report from earlier this week that Iran loaded no crude onto tankers in September. That was the first month with no loadings since the U.S.-Israeli war began on Feb. 28, down from about 250,000 barrels per day in August.shafaq+1

Before his resignation became public, state media quoted Paknejad as saying that "revenues of the oil that we have sold are still coming and that will continue God willing".arabnews