Iran's Oil Minister, Mohsen Paknejad, submitted his resignation to President Masoud Pezeshkian following pressures from U.S. sanctions and a severe decline in the country's oil exports. This resignation comes as Iran's crude oil exports head towards zero, and the country's oil revenues have significantly decreased.
Changes in Leadership of Iran's Oil Industry
After Paknejad's resignation was accepted, Hamid Bord, the head of the National Iranian Oil Company (NIOC), was appointed as the acting Oil Minister. Bord, who has been leading NIOC since 2024, will face major challenges, including declining oil exports and pressures from sanctions aimed at preventing Iranian oil from reaching global markets.
Read more: Hamid Bord Appointed as Acting Oil Minister of Iran
Former Oil Minister Paknejad had been in charge of the Ministry of Oil since July 2024 and recently announced that revenues from previous oil sales were still reaching Iran. However, officials have stated that Iran's oil exports have reached zero, and no oil revenue is expected for the country this week.
Economic Crisis and Fuel Shortage in Iran
With the severe decline in oil revenues, the economic crisis in Iran has deepened. The exchange rate last week hit a record low of 2.688 million rials per dollar, and inflation has risen above 70 percent. Additionally, Iran is facing a fuel shortage domestically, with reports indicating a daily deficit of about 10 million liters of gasoline.
As a result of this crisis, the government decided to raise gasoline prices after the end of the monthly subsidized quota. This has led to long lines at gas stations and public dissatisfaction. Bord, who is also under U.S. sanctions, is recognized as one of the key officials in Iran's oil industry and must work to maintain oil production levels and find a way to market Iran's crude oil.
Given that Bord was previously known as the Deputy Oil Minister and CEO of the National Iranian Oil Company, he is expected to leverage his experience in this new position. The pressures from sanctions and declining oil revenues have severely impacted Iran's economic situation, and the repercussions may lead to deeper crises.
Read more: Hamid Bord Emphasized the Need for National Cooperation to Overcome Challenges · Increase in U.S. Crude Oil Exports as a Key Global Source
