Iran replaces oil minister amid US sanctions and war pressures
Iran’s Oil Minister Mohsen Paknejad has stepped down, citing personal reasons, and Hamid Bovard, the CEO of the National Iranian Oil Company (NIOC), has been appointed as acting minister. Paknejad, who had held the position since August 2024, resigned as the ongoing war between Iran and the United States continues to strain the country’s economy and energy sector.
According to Mehdi Tabatabaei, communications deputy in the president’s office, Paknejad had submitted his resignation earlier and it was accepted by President Masoud Pezeshkian. Bovard, an experienced oil executive, will now lead the ministry at a critical time for Iran’s energy sector, which faces mounting pressure over exports, revenues, and access to international markets.
The resignation comes as Iran’s oil industry struggles under US sanctions and restrictions on crude sales. US Treasury Secretary Scott Bessent claimed that Iran had no oil shipments remaining at sea and would generate zero oil revenue that week. The US has intensified efforts to isolate Iran financially, launching Operation Economic Outcast in August to cut Iran off from the global financial system.
The conflict, which began on February 28, has disrupted oil movement through the Strait of Hormuz, a key energy chokepoint. While Iran continues to insist that oil revenues from past sales are still reaching the country, the change in leadership at the Oil Ministry highlights the challenges Tehran faces in monetizing its oil resources amid ongoing diplomatic efforts to end the conflict.