Iran’s Oil Minister Resigns as Economic Crisis Deepens with Rial Collapse

Iran's economic crisis has deepened as Oil Minister Mohsen Paknejad resigned, citing personal reasons. However, his departure follows allegations that nearly $2 billion in oil revenues remained unpaid to the state-owned National Iranian Oil Company (NIOC). A report by Farhikhtegan accused three individual trustees involved in oil contracts of owing NIOC hundreds of millions of dollars each. Iran’s parliament has launched an inquiry into these claims, though some suggest they may reflect internal power struggles within the oil industry.

The crisis comes as Iran faces soaring inflation and a sharp decline in foreign-exchange earnings. The rial has plummeted more than 10% in the past month and over 50% in the past year, with $1 now worth about 1,741,320 rials. The economy contracted 10% in the first quarter, and inflation has surged to 85%. Iran’s central bank has pledged up to $2 billion to support the rial as sanctions and a U.S. naval blockade restrict oil exports.

Senior Iranian officials have acknowledged the severity of the crisis. National security adviser Mohsen Rezaei warned that the economy is facing one of its "most challenging periods." President Masoud Pezeshkian acknowledged "intensified" economic pressure and stated his government has adopted a "new arrangement" to manage the situation.

Meanwhile, U.S. Treasury Secretary Scott Bessent claimed that the economic pressure campaign against Iran is delivering results. In an X post, Bessent stated that "Operation Economic Outcast" has led to the rial’s record lows and a halt in crude oil shipments. He emphasized that the campaign will continue until Iran ceases financing terrorism or developing nuclear weapons.