Iran’s Oil Minister Resigns as U.S. Blockade Chokes Crude Exports

Iran's Oil Minister Mohsen Paknejad has resigned as the U.S. blockade threatens to eliminate the country's crude exports and oil revenues, with the National Iranian Oil Company (NIOC) now overseeing the industry's most vital asset. President Masoud Pezeshkian accepted Paknejad's resignation on Sunday and appointed NIOC chief Hamid Bovard as acting oil minister, per Reuters.

Paknejad reportedly requested his resignation for personal reasons "a long time ago," which Pezeshkian had previously denied. Bovard assumes the role as Washington attempts to prevent Iran's remaining oil exports from reaching international markets. U.S. Treasury Secretary Scott Bessent announced on Saturday that Iran has no oil shipments at sea, resulting in zero oil revenue for the week, according to Anadolu.

Iran's central bank governor stated in August that oil exports had effectively reached zero. Just hours before Paknejad's resignation, he claimed that revenues from sold oil were still reaching Iran and would continue, per Reuters. Bovard, however, is currently under U.S. sanctions for operating in Iran's petroleum sector as part of sanctions targeting Iran's oil industry and its so-called shadow fleet.

Iran is also grappling with fuel supply issues at home, facing a gasoline deficit of approximately 10 million liters per day. The National reports that Tehran raised the price of gasoline purchased above the subsidized monthly quota last month due to shortages and long queues at filling stations. Bovard has been heading NIOC since 2024, previously managing the National Iranian South Oil Company and Iranian Offshore Oil Company.

His career has primarily focused on oilfield operations. The decline in oil revenues is exacerbating Iran's broader financial crisis, with the rial falling to a record low of around 2.688 million to the dollar last week, and inflation surpassing 70%, according to Reuters. Paknejad had been in charge of the Oil Ministry since August 2024.

With his departure, Bovard is now responsible for maintaining oil production and finding a market for Iranian crude as Washington strives to prevent those barrels from leaving the country.