Iran Oil Minister Resigns as US Blockade Intensifies Pressure
Iranian Oil Minister Mohsen Paknejad has resigned, leading President Masoud Pezeshkian to appoint Hamid Bovard, the head of the National Iranian Oil Company, as acting minister. The resignation comes amid a US naval blockade that is severely restricting Iran's petroleum exports. Initially, Pezeshkian had asked Paknejad to stay, but the minister's request to step down due to personal issues was eventually accepted.
The departure of Paknejad occurs as Iran's energy sector faces significant pressure from American sanctions and shipping restrictions. The Strait of Hormuz, a critical corridor for global crude oil and liquefied natural gas shipments, has become a major point of contention. Before recent US and Israeli strikes on Iran, the strait facilitated around a fifth of global shipments of these resources.
Washington has imposed a counterblockade targeting Iranian ports, aiming to halt petroleum exports and restrict access to oil income and foreign currency. This has led to economic strain, including long queues at petrol stations in Tehran and other cities. The US Treasury recently announced fresh sanctions targeting Iran's automotive and rail industries under its “Operation Economic Outcast” campaign.
President Donald Trump claimed that oil prices were falling and that Iran had “virtually given up” its nuclear ambitions. The economic campaign against Iran's petroleum earnings remains a key focus of Washington's strategy, as hostilities between the two nations enter their eighth month.