Iran’s Oil Minister Resigns Amid Reports of Disputes with President

Iran’s Oil Minister Mohsen Paknejad has abruptly resigned from his post, with President Masoud Pezeshkian accepting his resignation and appointing Hamid Bovard, CEO of the state-run National Iranian Oil Company (NIOC), as caretaker oil minister until Parliament approves a new minister.

The reason for Paknejad’s sudden departure remains unclear, though local media had previously speculated about disagreements with the president. Reports suggested President Pezeshkian was dissatisfied with Paknejad’s handling of the “trustees,” a network of oil traders accused of failing to return over $10 billion in revenue from Iranian oil exports.

The trustees system was established in 2018 to bypass sanctions, allowing private intermediaries to sell Iranian crude oil and petrochemicals abroad and transfer proceeds through complex financial channels. This approach was initiated after the U.S. withdrew from the 2015 Iran nuclear deal and reinstated sanctions.

Paknejad, who was appointed two years ago following Pezeshkian’s election, led Iran’s oil and gas industry through U.S. and Israeli aggression, including the reconstruction of petrochemical plants damaged in Israeli airstrikes. Bovard, a long-serving oil ministry staffer, has been at the helm of NIOC under Paknejad and has spearheaded plans to boost Iran’s oil and gas production despite U.S. sanctions.