Iran’s Oil Minister Mohsen Paknejad Resigns Amid US Oil Export Blockade

Iran’s Oil Minister Mohsen Paknejad has resigned, Iranian state media announced on Sunday, in a major shake-up at the top of the country’s energy sector. Hamid Bovard, chief executive of the state-owned National Iranian Oil Company, has been appointed acting oil minister by presidential decree, as a United States blockade on Iranian oil exports tightens during the seven-month war between Iran and the US.

FAKTA

• Who resigned: Oil Minister Mohsen Paknejad, who had led Iran’s oil ministry since August 2024.
• Successor: Hamid Bovard, chief executive of the government-owned National Iranian Oil Company, appointed acting Minister of Oil by a decree from President Masoud Pezeshkian.
• Stated reason: personal reasons. Mehdi Tabatabaei, communications deputy in the president’s office, told state TV that Paknejad had offered his resignation “a long time ago”, that Pezeshkian initially rejected it and asked him to stay, but accepted it at the minister’s insistence — commending his “efforts and sincere service”.
• Context: the resignation comes seven months into the war between Iran and the US, with Washington enforcing a blockade on Iranian oil exports and the Strait of Hormuz the focal point of the confrontation.
• Unconfirmed: some Iranian media have pointed to a dispute between the oil ministry and the Persian Gulf Petrochemical Industries Company as a possible factor. This has not been officially confirmed.

Pezeshkian accepts resignation after earlier refusal

According to the statement from the president’s office, carried by state broadcaster IRIB: “Following the acceptance of Mohsen Paknejad’s resignation, Hamid Bovard, the CEO of the National Iranian Oil Company, has been appointed as acting Minister of Oil by a decree from the president.”

In a news bulletin on the resignation, state television aired an interview with an official from the Iranian presidential office who said Paknejad had initially offered his resignation some time ago “due to personal issues”, but it was rejected. President Masoud Pezeshkian had asked Paknejad to continue in his post, but is now accepting his departure, as the minister has insisted on leaving.

US blockade squeezes Iran’s oil lifeline

The departure comes as the seven-month-old war between Iran and the US puts mounting pressure on Iran’s economy. After US and Israeli strikes against Iran in late February, the crucial Strait of Hormuz waterway became the focal point of the conflict. Tehran has been blocking the passage of commercial ships and firing on vessels it accuses of unauthorised crossings, while Washington responded with a counterblockade of Iranian ports to prevent Tehran from exporting its oil.

Earlier in the war, long queues built up at petrol stations in Tehran and other Iranian cities as Washington choked the country’s economy. Shortly before the resignation was announced, Paknejad was quoted by state media insisting that “revenues of the oil that we have sold are still coming and that will continue God willing”.

Internal dispute reports unconfirmed

Some Iranian media have suggested a dispute between the oil ministry and the Persian Gulf Petrochemical Industries Company may have played a role in the minister’s exit. The reports have not been officially confirmed, and the presidency’s account attributes the resignation to personal reasons that the minister had raised previously.

What happens next

With Bovard now acting minister, Iran’s oil sector faces the immediate challenge of sustaining exports under the US blockade while ceasefire negotiations continue. Tehran and Washington have exchanged statements on ending the war, but Iranian officials have warned that a final deal is not imminent.

Follow the latest developments on Watan News International’s Middle East page.