Iran Oil Minister Resigns as Economic Crisis Deepens

Iran’s oil minister, Mohsen Paknejad, has resigned amid growing economic turmoil in the country. His departure follows reports that an intermediary trust selling Iranian oil abroad owed the state millions of dollars in unpaid export receipts. The crisis is deepening as Iran faces skyrocketing inflation at 85%, a collapsing currency, and a severe drop in oil revenues due to U.S. sanctions and a naval blockade.

The rial has lost over 10% of its value in the past month, with the dollar trading at a record high of 269,000 tomans. The economic strain has led to widespread resignations among the professional middle class, including teachers and nurses, as salaries fail to keep up with soaring prices. The central bank has stated it cannot defend the rial’s value but will manage fluctuations.

Emergency government meetings have failed to produce meaningful solutions, while reports suggest internal power struggles and possible corruption within the oil industry. The president, Masoud Pezeshkian, accepted Paknejad’s resignation, citing personal reasons. Meanwhile, attacks on ships in the Strait of Hormuz have increased, and Saudi Arabia’s east-west pipeline has been forced to close again after another attack.

Food inflation stands at 130%, and the minimum monthly wage is worth only about $66. Efforts to freeze prices on basic goods have met with skepticism, though the government has hinted at a second wage increase for public sector workers. Nurses and other professionals have expressed frustration, with some choosing to leave their jobs due to unsustainable living conditions.