Iran Oil Minister Resigns Amid US Blockade and Export Collapse

Iran's Oil Minister Mohsen Paknejad has stepped down, citing personal reasons, as the country's oil industry faces severe challenges due to intensified US pressure. President Masoud Pezeshkian accepted Paknejad's resignation after previously rejecting his earlier requests to leave. Hamid Bovard, Deputy Oil Minister and Managing Director of the National Iranian Oil Company (NIOC), has been appointed as the interim minister.

The resignation comes at a critical time for Iran, as a US naval blockade in the Persian Gulf has halted the country's oil exports, a vital source of revenue. This blockade has forced Iran to cut production and exacerbated domestic shortages of petrol and natural gas, which have been worsened by the ongoing seven-month war with Washington.

Bovard, who previously led several NIOC subsidiaries focused on oil and gas production and exploration, now faces the daunting task of navigating the industry through this unprecedented pressure. The situation has also drawn attention to the network of intermediaries Iran uses to bypass US sanctions, with the judiciary chief criticizing the so-called “trustees” for allegedly failing to repatriate proceeds from crude oil sales.