Iran's Oil Minister resigns and is replaced on an interim basis by CEO of state-owned company

Iran's Oil Minister Mohsen Paknejad resigned for personal reasons, and Hamid Bovard, CEO of the state-owned National Iranian Oil Company, will take over the ministry on an interim basis, state media reported on Sunday (4).

Paknejad had held the position since August 2024. His departure comes amid the war between Iran and the United States, which has lasted seven months and has put pressure on the Iranian economy.

Mehdi Tabatabaei, the presidency's deputy head of communications, told state television that Paknejad had resigned for personal reasons "a long time ago" and that his request was accepted by President Masoud Pezeshkian after the minister's insistence.

"With the acceptance of Mohsen Paknejad's resignation by Dr. Pezeshkian, Hamid Bovard has been appointed interim Minister of Petroleum," Tabatabaei said earlier, according to state media.

Before news of his resignation broke, Paknejad was quoted by state media as saying that "revenues from the oil we sell continue to come in, and this will continue, God willing."

The conflict has raised oil prices, as traffic through the Strait of Hormuz remains paralyzed. The route was responsible for around 20% of the global flow of the commodity.

For Iran, the rise in oil prices, in principle, increases the value of its main export commodity. The impact on the country, however, is limited by the interruption in Hormuz, which makes it difficult to flow production and reduces the ability to generate revenue from exports.