Iran Replaces Oil Minister Amid Fuel Shortages and US Sanctions

Iranian President Masoud Pezeshkian has accepted the resignation of Oil Minister Mohsen Paknejad, state media announced Sunday. The resignation comes as Iran grapples with severe fuel shortages and escalating US economic sanctions. Hamid Pourd has been appointed as acting oil minister, though the reasons for Paknejad’s departure remain unclear.

Paknejad had been in office since August 2024, part of Pezeshkian’s government. His resignation follows rising challenges in Iran’s oil sector, including a US naval blockade that has restricted oil exports through the Strait of Hormuz. The Wall Street Journal reported that Iran’s oil export capacity has declined since the US reimposed its blockade in July.

US Treasury Secretary Scott Bessent stated that Iran would have no oil shipments at sea during the current week, describing the US campaign as an unprecedented effort to isolate Tehran economically. The decline in oil revenues has added pressure on Iran’s economy, with alternative shipping routes becoming crucial despite their higher costs and security risks.

The leadership change at Iran’s Oil Ministry occurs at a critical time, as the country faces growing strain on fuel supplies and broader economic challenges due to export restrictions.