Iran oil minister resigns amid US sanctions and Strait of Hormuz tensions

Iran's Oil Minister Mohsen Paknejad has stepped down for personal reasons, according to state media reports. His resignation was accepted by President Masoud Pezeshkian, and Hamid Bovard, the CEO of the National Iranian Oil Company, has been appointed as acting minister. Paknejad, who had held the position since August 2024, faced significant economic pressures due to the ongoing seven-month conflict between Iran and the United States.

The resignation comes at a critical time for Iran's oil industry, which is under intense pressure from tightened US sanctions and a naval blockade. Before his departure, Paknejad reassured that revenues from oil sales would continue. Iran has been pushing for the US to lift sanctions on its oil exports and end the blockade as part of negotiations to reopen the Strait of Hormuz, a crucial route for its oil shipments.

Mehdi Tabatabaei, communications deputy in the president's office, stated that Paknejad had resigned 'a long time ago' but his resignation was only recently accepted at his insistence. The change in leadership highlights the challenges Iran faces in maintaining its oil revenue amidst geopolitical tensions.