Mohsen Paknejad, the Minister of Oil of the Islamic Republic, resigned from his position on Sunday, October 12. This change comes at a time when the Islamic Republic is facing severe economic pressures from the United States and increasing restrictions on oil exports.
Reasons for Resignation and Existing Ambiguities
Paknejad's resignation was accepted at a time when the Ministry of Oil is facing serious crises in management and oil revenues. Masoud Pezeshkian, the Speaker of the Parliament, accepted his resignation, and Hamid Bourd, the CEO of the National Iranian Oil Company, was appointed as the caretaker of the Ministry of Oil. The Presidential Office claimed that Paknejad had requested to resign "a long time ago" due to "personal problems and reasons." However, these explanations face serious questions, as the reasons for resignation were raised during one of the most critical times for the oil industry of the Islamic Republic.
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External and Internal Pressures on the Oil Industry
The pressure on Iran's oil exports has significantly increased in recent weeks. The U.S. Treasury Department has expanded the scope of sanctions under the "Operation Economic Outcast" program and explicitly stated that its goal is to cut off the oil revenues of the Islamic Republic and the Islamic Revolutionary Guard Corps. The latest actions from Washington on October 1, 2023, have put more sectors of the Iranian economy under pressure.
Tracking data for oil tankers indicates a decrease in loading and oil exports from Iran. While Paknejad previously insisted that oil sales had not stopped, reports indicate contradictory realities. Meanwhile, within the Ministry of Oil, serious disputes were forming between Paknejad and Mohammad Shariatmadari, the Minister of Cooperatives, Labor, and Social Welfare, particularly regarding the management of the Persian Gulf Petrochemical Industries Holding. These disputes and conflicts have publicly led to legal disputes and interference from the Presidential Office.
This situation reflects the critical state in which the Minister of Oil of the Islamic Republic has found himself, and it seems that mere personal reasons cannot justify this resignation. Furthermore, the Ministry of Oil is also facing other ambiguous cases related to intermediary networks for selling oil and transferring money. These networks have been known as "trustees" for years and are currently under the supervision of regulatory bodies.
Considering all these factors, it is still unclear which of these pressures and conflicts ultimately led to Paknejad's resignation. However, what is certain is that the minister responsible for the primary source of revenue for the Islamic Republic has resigned at a time when oil sales and access to its revenues have become one of the government's vulnerable points.
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