Source : INDIA TODAY NEWS
Amid a prolonged war with the US and mounting pressure on the economy, Iranian Oil Minister Mohsen Paknejad has resigned, state media reported on Sunday.
According to an official at the president’s office cited by state media, President Masoud Pezeshkian accepted Paknejad’s resignation and appointed Hamid Bovard, chief executive of the state-owned National Iranian Oil Company (NIOC), as acting oil minister.
advertisement
Paknejad had served as oil minister since August 2024. State media did not give a reason for his resignation or indicate whether it was linked directly to the economic pressures created by the conflict.
The change comes as Iran‘s vital oil industry faces growing pressure, with the war adding uncertainty around exports and government revenues. Shortly before news of his resignation emerged, Paknejad sought to reassure the public about oil earnings, saying: “Revenues of the oil that we have sold are still coming and that will continue God willing.”
Bovard, who has led NIOC, will now oversee the ministry on an acting basis as Iran navigates mounting economic and energy challenges.
RIAL HITS RECORD LOW
This comes as the broader economic picture has become increasingly difficult for Tehran. According to Reuters, Iran’s rial fell to a record low on Saturday, trading at around 2.688 million to the US dollar, while the currency has lost more than half its value over the past year. Inflation has climbed above 70 per cent, which has made everyday essentials and housing increasingly difficult to afford.
The pressure is particularly severe for Iran’s oil-dependent economy. Official data cited by Reuters showed that Iran’s economy contracted 10.1 per cent year-on-year between March 21 and June 20, while activity in the oil and gas sector plunged 26.4 per cent.
TRUMP ADMINISTRATION TIGHTENS THE SCREW
Washington has made cutting off Iran’s oil revenues a central part of its economic campaign.
On Friday, the US Treasury announced new sanctions targeting Iran’s rail and automotive sectors under its “Operation Economic Outcast” campaign. Treasury Secretary Scott Bessent said the measures were aimed at further reducing Tehran’s ability to finance the war, saying Washington was laying the groundwork to “drain the regime’s revenue once and for all”.
Bessent has also said the US pressure campaign is targeting Iran’s remaining sources of oil revenue. The administration has warned that sanctions and the naval blockade are designed to restrict Tehran’s ability to sell crude and access foreign currency.
US President Donald Trump, meanwhile, said on Saturday that oil prices were falling and claimed Iran had “virtually given up” plans for a nuclear weapon. His comments came as the conflict entered its eighth month.
The Trump administration’s economic pressure has therefore put Iran’s oil sector at the centre of the conflict — making Paknejad’s resignation particularly significant as Tehran struggles to keep its energy revenues flowing.
– Ends
SOURCE :- TIMES OF INDIA
