Iran Oil Minister Resigns Amid $2 Billion Revenue Scandal
Iranian Oil Minister Mohsen Paknejad has resigned, with President Masoud Pezeshkian citing personal reasons for the departure. The resignation comes as Iran's parliament investigates allegations of nearly $2 billion in unpaid oil revenues owed to the National Iranian Oil Company (NIOC). The inquiry follows reports that an intermediary trust managing overseas oil sales proceeds owed significant sums to NIOC, with three trustees allegedly holding hundreds of millions of dollars in unpaid funds.
The minister's exit coincides with severe economic turmoil in Iran. The rial has plummeted more than 10% in the past month and over 50% in the past year, reaching a record low of 1,741,320 per US dollar. The country's economy contracted by 10% in the first quarter, while inflation soared to 85%. The central bank has pledged up to $2 billion to support the currency amid sanctions and a US naval blockade disrupting oil exports.
US officials claim their pressure campaign, dubbed 'Operation Economic Outcast,' is succeeding. Treasury Secretary Scott Bessent noted that Iran shipped zero crude oil last month and emphasized that the campaign will continue until Iran halts financing for terrorism and nuclear development. National security adviser Mohsen Rezaei warned of one of the economy's most challenging periods during a government meeting on October 3.
The timing of the $2 billion revenue shortfall at NIOC and the central bank's $2 billion intervention suggests foreign exchange reserves are being drained to offset lost oil revenue rather than for broader economic support.